One very important thing to note on the LTC chart, is the action around the 50 (in orange.) As many of you know, I have been talking about how important this is for a very long time. Looking at this chart, you can see just how reactive the 50 has been. Starting from the left side of the chart, you can see that the 50 was held on numerous occasions (green moons,) during the last bull market rally to the all time high. It was a critical on the way up. As we move to the right side of the chart, we can see that the 50 has acted as critical resistance (pink lightning bolts,) multiple times on the way down.
Since we can see how reactive the 50 is, we can use it as an indicator to help us understand when the market may be reaching a major reversal point. More specifically, if we suddenly begin to get above the 50 , hold it as support, and then rally higher, that would be a technical indication that something very different is occurring. 50 support hasn't existed during the majority of the bear market. So, that would be an important turning point for technical indications.
With that said, you always want to trade off of multiple indicators. I usually look for at least three or more indicators, to gain confidence in my technical perspective. Looking at the , we can see that it has printed two very clear divergences. The first one was massive, but it failed to produce a breakout to the upside, which isn't abnormal for divergences. The second has been much smaller, but the fact that it was printed immediately after the fist one, shows us that the sell side momentum is rapidly decaying. Furthermore, the is currently starting to get above the zero line. So, if momentum can begin to more higher, thereby holding the zero line, that would be a technical buy signal.
So, the is beginning to look increasingly . Price is currently above the 50 , and attempting to hold it as support. Price is also printing what appears to be an inverted pattern, with a large in the right shoulder (in black.) If I were to zoom in, you can see that price is currently just getting above the , but is very light. Ideally, we should see a bit of a rise in , as price holds the 50 as support, and rises toward the inverted neckline (in green.) A break above that would complete the IH&S pattern, sending LTC toward the mid to high $40s.
I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic! revoir.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***