Ok let’s have a look at LTC vs BTC on the daily log chart!
As you can see we are currently trading within the large dotted down trend channel. Back in early March we formed a descending triangle (Purple) which we broke out to the downside from. We then formed another descending triangle (Orange) from which we have recently broken out to the upside from back on 18th of April.
So where does this leave us now? Good question! We have now formed a new smaller down trend channel between the upside of the Orange descending triangle from where we broke out, and the down side of the larger dotted overall downtrend channel. We have tested the resistance of the larger down trend channel three times in the past 5 days and failed to even pierce let alone break through it, so we have some work to do!
Given Aroon Up/Down is slowly falling, momentum on the MACD is relatively weak (though the MACD is trending above the signal line and trending slightly upwards) and the RSI is almost smack bang on 50; we seem poised to make a decision as to which way to go real soon!
In a bullish sign, we have opened above the previously heavy resistance of the 26 EMA and have an emerging Three Inside Up candlestick pattern emerging. If this pattern completes and we can close above the top of the down trend channel with enough volume by tomorrows close, the 23.6% Fib level should not provide much (if any) resistance due to the historical levels of support we have had here (through the first half of Feb). This takes us up our green arrow path to 0.019222 for our next test of the heavy resistance found at the 38.2% Fib.
If we fail to break out by close tomorrow, then we will likely follow the red path and go lower, perhaps forming a triple bottom (which is a bullish chart pattern) before attempting another run up (which would be likely be successful).
In closing, I am personally bullish in the long term. Short term I need to see a break above the down trend channel supported by volume by tomorrows close, before going long to 0.019222. I think we may just build enough momentum to do this, provided the Three Inside Up pattern that is emerging completes.
Safe Trading Everyone!
Cheers
As you can see we are currently trading within the large dotted down trend channel. Back in early March we formed a descending triangle (Purple) which we broke out to the downside from. We then formed another descending triangle (Orange) from which we have recently broken out to the upside from back on 18th of April.
So where does this leave us now? Good question! We have now formed a new smaller down trend channel between the upside of the Orange descending triangle from where we broke out, and the down side of the larger dotted overall downtrend channel. We have tested the resistance of the larger down trend channel three times in the past 5 days and failed to even pierce let alone break through it, so we have some work to do!
Given Aroon Up/Down is slowly falling, momentum on the MACD is relatively weak (though the MACD is trending above the signal line and trending slightly upwards) and the RSI is almost smack bang on 50; we seem poised to make a decision as to which way to go real soon!
In a bullish sign, we have opened above the previously heavy resistance of the 26 EMA and have an emerging Three Inside Up candlestick pattern emerging. If this pattern completes and we can close above the top of the down trend channel with enough volume by tomorrows close, the 23.6% Fib level should not provide much (if any) resistance due to the historical levels of support we have had here (through the first half of Feb). This takes us up our green arrow path to 0.019222 for our next test of the heavy resistance found at the 38.2% Fib.
If we fail to break out by close tomorrow, then we will likely follow the red path and go lower, perhaps forming a triple bottom (which is a bullish chart pattern) before attempting another run up (which would be likely be successful).
In closing, I am personally bullish in the long term. Short term I need to see a break above the down trend channel supported by volume by tomorrows close, before going long to 0.019222. I think we may just build enough momentum to do this, provided the Three Inside Up pattern that is emerging completes.
Safe Trading Everyone!
Cheers