Hi friends! Welcome to this update analysis on Litecoin. Let's get right to it! Looking at the four hour chart, you can see that LTC initially fell through some key levels of support, after yesterday's analysis. As you can see, it broke below the pink dotted trendline, and it barely broke below the bottom of the bull flag. From there, we had a nearly instant reversal back up inside of the flag, so if anything, I have to consider that as just a failed breakdown. We did lose the 50 EMA, and LTC is testing the 50 and the pink dotted trendline, as overhead resistance. However, we are technically back inside of the bull flag, so it is still relevant. You may be wondering how long the flag can extend, before it isn't considered to be a flag anymore. Generally, the answer is the lowest point of the pole, but I like to take it a bit higher than that. So, if I see the price action take out yesterdays low, I will have to discard the bull flag, and reassess the formation.
You can see that the overall picture is still very much inline with my recent analyses. LTC continues to form the right shoulder, in the inverse head and shoulders pattern, as it gears up to retest the heavy resistance at the 50% retrace. With that said, when we confirm above the 50% retrace, that is going to be mega bullish. I've highlighted that level in red, so that you can see exactly how reactionary it has been. From the all time highs on the left side of the chart, to the recent price action, it has been a major level to contend with. When we confirm above it, LTC is probably going to rip.
On the MACD, you can see that there is an impending bullish crossover, but volume remains suppressed, as traders wait on the sidelines. As I write this, the 50 EMA is being surpassed, so we may see a move back toward the top of the flag soon. Keep an eye on the development of the right shoulder, and especially the 50% retrace. If a move to the downside occurs, the 61.8% is the line in the sand, before the an epic fall could occur. However, that is just an assessment of downside risk. This analysis is focused on a continuation higher, to fulfill the inverse head and shoulders pattern. I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic. Au revoir.
This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, comment, like, and share on social media. Good luck trading everyone!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-MPC loves you-
-JD-
You can see that the overall picture is still very much inline with my recent analyses. LTC continues to form the right shoulder, in the inverse head and shoulders pattern, as it gears up to retest the heavy resistance at the 50% retrace. With that said, when we confirm above the 50% retrace, that is going to be mega bullish. I've highlighted that level in red, so that you can see exactly how reactionary it has been. From the all time highs on the left side of the chart, to the recent price action, it has been a major level to contend with. When we confirm above it, LTC is probably going to rip.
On the MACD, you can see that there is an impending bullish crossover, but volume remains suppressed, as traders wait on the sidelines. As I write this, the 50 EMA is being surpassed, so we may see a move back toward the top of the flag soon. Keep an eye on the development of the right shoulder, and especially the 50% retrace. If a move to the downside occurs, the 61.8% is the line in the sand, before the an epic fall could occur. However, that is just an assessment of downside risk. This analysis is focused on a continuation higher, to fulfill the inverse head and shoulders pattern. I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic. Au revoir.
This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, comment, like, and share on social media. Good luck trading everyone!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-MPC loves you-
-JD-