Hi friends! I hope you're all doing well. Let's take a look at Litecoin! If you recall from yesterday's analysis, we discussed the convergence of many support levels in the same area. We had the top of the falling parallel channel (grey dashes,) the bottom of the newly formed uptrend channel (in blue,) the 50% retracement level, and the 200 EMA (in pruple,) and all of those support levels were just below us — like a nice little hammock or something. I told you that because of the convergence of several support levels, that area was likely to hold. Looking at the four hour chart, LTC is currently doing exactly that, as it tries to rally higher. Looking at the recent action more closely, we can see that it did fall below the newly formed uptrend channel, but found support on the 200 EMA. For the bulls to gain the advantage, they need to get LTC back above the 50 EMA (in orange,) and preferably back inside of the uptrend channel. If those two things materialize, I would like to see one development, before siding with the bulls — a sustained breakout above the pink dashed resistance level. For me, that will be a short term buy signal, clearing the way for a potential surge to the top of the newly formed uptrend channel. On the downside, a break back below the 200 EMA, and the 50% retracement level, would confirm sustained weakness, and LTC would likely fall lower. The first support would be found around $220. Below that, LTC would need to hold the critical support at $200.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-JD-
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-JD-