Hello Traders!,
Another chart today worth having a look, LTCBTC Inverse head and shoulders break!
Points to consider,
- Trend coming out of bear market
- Broke resistance and neckline
- Increasing bull volume
- RSI in overbought territory
- Stochs in upper region
- EMA’s holding price support
- Perfect respect of the 1.414 Fibonacci extension
Litecoin has broken its structural resistance which was also its neckline with convincing bull volume signifying that this is not a false breakout. Litecoin bulls were able to test perfectly the 1.414 Fibonacci extension before a volume climax. The calculated target for this head and shoulders pattern lines up perfectly with the next structural resistance (blue vertical line)
There is a probability that Litecoin retests is now potential support with a healthy pull back as indicators such as the RSI and Stochs are overextended. The RSI is in overbought territory, it hasn’t tested this area in sometime, a retrace to a neutral area will cool it off. The stochs is trending in the upper region where it can trade for some time, however, eventually just like the RSI will need to return back to neutral area when and if price has a pull back.
EMA’s are currently bullish, there is a high degree of probability of price returning and test these EMA’s before a continuation to the calculated target…
What are your thoughts on Litecoin? Will it reach its Inverse head and shoulders target?
Please leave a like and comment
And remember,
“Short term volatility is greatest at turning points and diminishes as a trend becomes established.” – George Soros
Another chart today worth having a look, LTCBTC Inverse head and shoulders break!
Points to consider,
- Trend coming out of bear market
- Broke resistance and neckline
- Increasing bull volume
- RSI in overbought territory
- Stochs in upper region
- EMA’s holding price support
- Perfect respect of the 1.414 Fibonacci extension
Litecoin has broken its structural resistance which was also its neckline with convincing bull volume signifying that this is not a false breakout. Litecoin bulls were able to test perfectly the 1.414 Fibonacci extension before a volume climax. The calculated target for this head and shoulders pattern lines up perfectly with the next structural resistance (blue vertical line)
There is a probability that Litecoin retests is now potential support with a healthy pull back as indicators such as the RSI and Stochs are overextended. The RSI is in overbought territory, it hasn’t tested this area in sometime, a retrace to a neutral area will cool it off. The stochs is trending in the upper region where it can trade for some time, however, eventually just like the RSI will need to return back to neutral area when and if price has a pull back.
EMA’s are currently bullish, there is a high degree of probability of price returning and test these EMA’s before a continuation to the calculated target…
What are your thoughts on Litecoin? Will it reach its Inverse head and shoulders target?
Please leave a like and comment
And remember,
“Short term volatility is greatest at turning points and diminishes as a trend becomes established.” – George Soros
