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 after the rally on the 18th, LTC created a bull flag consolidation, much like the one that I highlighted on my BTC post this morning. Price was able to surpass the 50 EMA (in orange,) but it has not yet created a higher high. You can see that a breakout of the bull flag has occurred on this current candle, and LTC is attempting to close above the 50 EMA. If LTC can manage to continue trading above the 50 EMA, it will be the first time that has been done in several weeks.
You can see that the projection from the bull flag extends above the 200 EMA (in purple.) So, the 200 stands in the way of further advancement, since it is a significant resistance level. With that said, if LTC is able to surpass the 200 EMA, we should eventually see a test of the top of the symmetrical triangle (in black.) Speaking of which, I would like to introduce you to that formation, since it is new on my chart.
Looking from the left side of the chart, you can see that LTC was trading in a low range, before it exploded to the all time high. Since then, we have been trendline sideways, forming a symmetrical triangle in the process. Symmetrical triangles are generally continuation patterns, but like all other formations, we need to see a breakout to confirm the overall direction that it will take us. With that being said, this formation is massive, and whatever direction it breaks, could be a substantial indication as to the overall direction of the medium-term future for LTC. Many of you know that I have a year end price target of $600 for Litecoin. So, an upside breakout of this symmetrical triangle, will be a nice step in helping us reach that target. On the other hand, a breakdown from this formation, would probably destroy the chances of $600 being reached. The breakout, up or down, will occur by April 16th, at the very latest.
On the MACD, we're still working over a bullish crossover, and we've crossed over the zero line, which is a technical buy signal. Volume was falling, confirming the consolidation pattern inside of the flag, but we have now gotten a buy-side volume spike that adds credibility to the bull flag breakout. 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-
You can see that the projection from the bull flag extends above the 200 EMA (in purple.) So, the 200 stands in the way of further advancement, since it is a significant resistance level. With that said, if LTC is able to surpass the 200 EMA, we should eventually see a test of the top of the symmetrical triangle (in black.) Speaking of which, I would like to introduce you to that formation, since it is new on my chart.
Looking from the left side of the chart, you can see that LTC was trading in a low range, before it exploded to the all time high. Since then, we have been trendline sideways, forming a symmetrical triangle in the process. Symmetrical triangles are generally continuation patterns, but like all other formations, we need to see a breakout to confirm the overall direction that it will take us. With that being said, this formation is massive, and whatever direction it breaks, could be a substantial indication as to the overall direction of the medium-term future for LTC. Many of you know that I have a year end price target of $600 for Litecoin. So, an upside breakout of this symmetrical triangle, will be a nice step in helping us reach that target. On the other hand, a breakdown from this formation, would probably destroy the chances of $600 being reached. The breakout, up or down, will occur by April 16th, at the very latest.
On the MACD, we're still working over a bullish crossover, and we've crossed over the zero line, which is a technical buy signal. Volume was falling, confirming the consolidation pattern inside of the flag, but we have now gotten a buy-side volume spike that adds credibility to the bull flag breakout. 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-