Hi friends! Welcome to this update analysis on Litecoin! Let's get right to it! Looking at the four hour chart, you can see that LTC has broken down from the third bear flag, just as anticipated. If you recall from my last post, I said "You can see that the 20 EMA (in blue) is falling through the current bear flag . The 20 EMA is what produced the resistance that caused the last bear flag breakdown, so it is likely to cause this flag to breakdown as well. Therefore, we can use the 20 EMA as an indicator of the breakdown potential of this flag. If LTC stays below it, the odds of a breakdown are very high." On the chart here, you can see that LTC did break above the 20 EMA at one point, but it found resistance at the top of the flag, and then it reversed back below the 20 EMA, and then it broke down from the bear flag.
Now, we can see that price action is continuing to move lower, as it closes in on the downside target, which is the rising green trendline support. The green trendline originates on 11/1, and catches the low of 2/6. It projects outward below the current price action, and a near term test of it would probably be in the 130-135 range. As you can see, the projected full scale breakdown of the triangle formation, ties in perfectly with the 135 area, but the large bear flag actually projects a correction below the rising green trendline . In terms of the current flag, it also projects a full scale breakdown to around the 135 area. So, we can see that there are several formations here, which indicate a continuation to lower levels. For now, be on the lookout for price to surpass the lowest level of the most recent flag, at 149.77. Below there, the 78.6% retrace is just below as support, and then the red support level at 137.20, followed by the rising green trendline. Good luck trading, comrades!
This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, comment, like, and share on social media. Good luck trading everyone!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-Magic loves you-
-JD-
Now, we can see that price action is continuing to move lower, as it closes in on the downside target, which is the rising green trendline support. The green trendline originates on 11/1, and catches the low of 2/6. It projects outward below the current price action, and a near term test of it would probably be in the 130-135 range. As you can see, the projected full scale breakdown of the triangle formation, ties in perfectly with the 135 area, but the large bear flag actually projects a correction below the rising green trendline . In terms of the current flag, it also projects a full scale breakdown to around the 135 area. So, we can see that there are several formations here, which indicate a continuation to lower levels. For now, be on the lookout for price to surpass the lowest level of the most recent flag, at 149.77. Below there, the 78.6% retrace is just below as support, and then the red support level at 137.20, followed by the rising green trendline. Good luck trading, comrades!
This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, comment, like, and share on social media. Good luck trading everyone!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-Magic loves you-
-JD-