Looking at the four hour chart, we can see that LTC has formed a textbook bear flag, underneath the 200 EMA. This bearish consolidation pattern has been formed by several unsuccessful attempts to rally back above the 200 EMA. The bear flag should break to the downside, pushing LTC to the next major target area of around $150. Recently, there has been some speculation about the legitimacy of my head and shoulders target, near the $106 area. Although that is a long way down, I would like to caution investors, who think that certain downside targets are not achievable. In terms of the technical formations (the massive head and shoulders, and the huge symmetrical triangle breakdown,) my downside targets are very realistic. Just to clarify how I achieved the possible downside target of $106, I took the highest point of the head and shoulders and measured it down to the neckline, then copied that distance over to the breakdown point. The height of the symmetrical triangle can also be used as a downside price target generator, but that would be much lower than $106. Those are basic target finding techniques in technical analysis. It is entirely possible that LTC never makes it to $106. However, given the expanding sell volume, and the multiple bearish formations, it is definitely possible that $106 is reached. As a word of advice, never be so convinced by your investments, that you think they can never fall. Always consider the worst case scenario.
-Jeremy D-
-Jeremy D-
Comment:
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
Comment:
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***