Here we have an interesting setup. We can attempt to go long if LTCUSD breaks above the resistance, expanding this week's range. A stop loss at 2.969 and a target at 3.819 gives us a very nice risk to reward ratio.
Rgmov indicates trend is up, and we have a weekly downtrend that has expired, triggering a range expansion up bar. After more than 5 weeks without new lows, volatility is very low, which is the right enviroment for a breakout trade, which also aims to capture the move when LTC catches up with BTC, in dollar terms.
If you are a LTC holder, once the target's hit, you can sell your Litecoins for dollar AND sell short with margin. Good luck if taking it. Make sure to check out Tim West's "Key Hidden Levels" chatroom for more trade setups and insightful discussion with other traders and with Tim himself.
If you want live updates and more information, make sure to follow me at collective2, where I provide signals for auto trading and via email for a monthly fee. I'm also providing access to a live trading chatroom free of charge for concordbay.com customers, contact me via skype for more details.
Cheers,
Ivan Labrie Time at Mode FX Analyst at Concord Bay dot com
Trade closed: target reached
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Spot on...
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Monitor for new weekly highs, it's unlikely but possible.
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Strong moves here, massive resistance to the left, keep that in mind. Trail stops using the 10 period moving average of the lows in the 4h or daily to be safe.
I think we coould see 9 if we have another bullish day tomrw
Ingemkts
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I am thinking it is possible a retracement
IvanLabrie
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I'd just let it do its thing now. It hit the first target, most likely retracing next. If it doesn't drop under the mode (red line), we could buy the retracement.
Ingemkts
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:)
Alekznder
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Considering the same buy stop setup! Cheers!
IvanLabrie
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Good luck!
Fxprotrader
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Beautiful..!
rivet.popper
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Why are new weekly highs unlikely? LTC follows BTC almost every time.
IvanLabrie
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Because the rally in btc already has some warning signals for bulls, and the ltc chart is considerably more bearish from the get go.
Let's wait and see, there's nothing more to do here, shorting is pretty dangerous, expecting big moves.
Thanks for stopping by, cheers!
rivet.popper
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Nah, I think Chinese traders will get jump right from BTC to LTC like they always do on a runup. As you say, wait and see...