Hello traders investors and community, I detected an interesting set-up with LTCUSD which I share with you today.
As you can see LTCUSD is trading in a downtrend channel with several bear-moves in the last time. Bulls are weak at this time which can change in the future but for now, bears have control over the overall structure. In my chart, you can see that LTCUSD made two triangles which broke to the downside and made sharp bear-moves. After this LTCUSD made a bear-flag which broke also to the downside. We are trading in a second possible bear-flag, the possibility for a break to the upside is given which is not very likely, most often those patterns break in the direction which price came from.
When we confirm this second bear-flag and move down the target which you see in my chart marked with the blue box is intact. We have strong support in this area which can lead to a move to the upside. This formation can be traded either conservative or aggressive. The conservative approach would be when the bear-flag is confirmed, an aggressive entry would be immediate. I wouldn´t recommend the aggressive approach here because a small possibility is there for a break in the wrong direction. Always good to wait on confirmation.
The information provided is only educational and should not be used to take action in markets. Feel free to comment with your opinion and support. For more market insight follow.
May all luck and happiness come to you ;)
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Tocuhed upper line of channel
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Touching support soon
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ANALYSIS UPDATE: LITECOIN completed the initial bear flag formation as expected to continue with a crucial bearish wave towards the lower channel supports.
Once LITECOIN reached the main support levels as projected the trend direction turned and LITECOIN formed the major channel breakout into the bullish direction.
Although I can see where you are coming from but LTC will not fall below the solid $51.00 support line. If it was going to make that move it would have occurred two weeks ago.