The weekly closed yesterday with a pretty nasty bearish candle pattern. On a time frame that high it's a strong signal. It is LTC's 'real' first correction since the start of the run, where ltc did x5 from 20 to $100.
We ended our run on the 100$ mark, a highly psychological barrier for traders. The price range from $93 to $110 was full of previous horizontale s/r. We also had the 0.236 of retracement from the whole correction at $105. Overall the daily is looking pretty bearish so far.
Putting my Elliott wave hat on as you can see on the chart, it looks like we ended a 5 waves impulsive structure. We're therefore looking for the highest probability zone for end of the correction of a potential wave 2, which is around the 0.5 to 0.618 area. 62$ looks like a very good potential refill as we have confluence.
- 0.5 of retracement
- Previous resistance of a 2 week ascending triangle
- wave 4
- Oversold RSI
ers, the volume is extremely low. That's basically why we are drilling through this price range. The next signs of liquidity will be around 62$ as well.
Finally let's take a look in H1, I previously thought that we had some sort of falling wedge but it better looks like a descending channel that we almost broke down. We can see some sort of consolidation on the RSI but the buy volume is still extremely weak.
To conclude, if you're a bull there is very little reason to buy right now, but sit tight as $62 to $57 offers a very good r:r ratio to refill.
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