The importance of Fibonacci support and resistance levels cannot be overstated. Look Carefully and you will find 13 instance from Mar. 22 until present in which they have served as support and resistance levels for LTC within a few dollars in most instances and near perfectly in others. Right now I am worried about LTC in the short term for a few simple reasons. The coin has been oscillating between the 0.786 and 0.618 bands with the 0.618 serving as string resistance. Short term I am bearish for three simple reason:
1) Within this Fibonacci band we can see what I believe to be mild negative divergence on the RSI marked with a dashed white line
2) There is a bearish volume pattern denoted by the leftmost downward sloping magenta line on the graph, preceded by and upward sloping green one, which is preceded by several downward sloping magenta lines which show a pattern.
3) Though the 'death cross' where the 50 day moving average crosses the 200 day never happened (I believe some analysts say it did and the graph does not support that) we are witnessing an imminent crossover as far as MACD is concerned denoted by a downward facing white arrow at the bottom of the shot. Look carefully at the last time this happened and you can see why I am very concerned short term.
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1) Within this Fibonacci band we can see what I believe to be mild negative divergence on the RSI marked with a dashed white line
2) There is a bearish volume pattern denoted by the leftmost downward sloping magenta line on the graph, preceded by and upward sloping green one, which is preceded by several downward sloping magenta lines which show a pattern.
3) Though the 'death cross' where the 50 day moving average crosses the 200 day never happened (I believe some analysts say it did and the graph does not support that) we are witnessing an imminent crossover as far as MACD is concerned denoted by a downward facing white arrow at the bottom of the shot. Look carefully at the last time this happened and you can see why I am very concerned short term.
If you found this info useful please give a thumbs up. If you disagree your comments are welcome so long as you provide evidence to support your position and you are constructive. Thanks for reading!
Comment:
With regard to point number three in my write up though we did come very, very close to witnessing a bearish MACD crossover it never actually happened. We have also seen a relatively good price increase in Litecoin since but again, I cannot be firmly bullish until we see a sustained break above 163, preferably above 166. I will be watching and waiting.