Litecoin is in the process of forming a very concerning pattern. While this pattern isn't a textbook head and shoulder's by any means. The context is still there that we'll get a large move down. This would also coincide with BTC about to break down. Of course if we get a sustained move above the 100-105 area, we will move much higher. The semi head and shoulders will only be confirmed if we break this 80 area to the downsides. For now I am taking a neutral to short bias. Let's see why a large move down is in the cards.
Le The first is we have MACD on the weekly that is now negative and sloping down. this coincides with an already negative MACD on the daily. RSI has come off it's highs' on the weekly and still has room to move down more. The daily RSI still needs to rebound which will cause some volatility and sideways movement for a time. On f the biggest reasons for a pullback is we have brokn the massive trendline that was supporting the move up. This is a rather large indication that a larger down move is going to happen.
If we break this immediate 80-85 support area we'll go down to 60 next. If we break 60 as it looks quite possible to do, we will head down to the 30-40 area.
Be prepared for a potentially massive move to the downside.
Best of luck trading and holding,
-Sherem
Le The first is we have MACD on the weekly that is now negative and sloping down. this coincides with an already negative MACD on the daily. RSI has come off it's highs' on the weekly and still has room to move down more. The daily RSI still needs to rebound which will cause some volatility and sideways movement for a time. On f the biggest reasons for a pullback is we have brokn the massive trendline that was supporting the move up. This is a rather large indication that a larger down move is going to happen.
If we break this immediate 80-85 support area we'll go down to 60 next. If we break 60 as it looks quite possible to do, we will head down to the 30-40 area.
Be prepared for a potentially massive move to the downside.
Best of luck trading and holding,
-Sherem
Comment:
We will go to 60, it will take time but we'll get there.
Comment:
Looks like we're about to break 70 and go down lower....
Comment:
Down we go, we are going to hit 30-40 at least. Careful!
Comment:
I would call this pattern pretty complete. Time to go long. Next target is much higher then $150.
Trade closed: target reached:
I need to start remembering to "close" out trades, closed a while ago. I am long on LTC now. Great short trade
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