MarcPMarkets

LTCUSD: Lower High Points To Attractive Support Area.

BITFINEX:LTCUSD   Litecoin / U.S. Dollar
LTCUSD             update: Lower high formations across the board imply further weakness in these markets. As bearish as this price action may appear, it is a welcome sign for the next swing trade long.

The lower high established at 153 is concerning if you are long, but if you saw my recent long term Elliott Wave count that I published on S.C., you will see that the level to really be concerned about is 105. The current bearish retrace is still within a price area that is attractive for broader time horizon longs.

The current price has two important levels in play. The 132 and 125 reversal zone boundaries which act as supports. IF price attempts to push lower and fails, that sets up the scenario for a short squeeze. Often these fake outs shake out the weak hands and offer an opportunity to buy from these reactive traders.

Keep in mind, IF price does in fact fall through, then these markets are more likely to retest major lows like 105 in this case.

In summary, the best thing to do in situations like this is to think like a contrarian and let the market prove itself. If it does prove strength, you should have a plan of action prepared. If it pushes below 125 decisively, then stand aside. If you are managing inventory, there is not much you can do except lighten your position if it is causing you stress. You can always get back in when the market stabilizes. Being mindful of the amount of risk you are exposed to should be your top priority.
Marc Principato, CMT |Author: Analyze Any Financial Market Like The Pros Using Price Action| http://www.Priceactiontraders.net | Cofounder http://www.seekingcryptos.com (S.C.)





Thanks for your thoughts
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Perfect timing! I was just considering my LTC position. Thanks for your thoughts.
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Love reading your ideas. I have been watching this one for a while and liked 136ish. But now i think it may go lower as you predicted. Im out on the sidelines for the time being.
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Well said, thanks for that. I like your style. Do you ever do short trade setups?
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