After the recent run up a few days ago this pullback seems to have been a necessity to keep things healthy. While there is still a lot to play out and more downside is still possible, it appears we have an inverse head and shoulders forming. On the 4 hour chart though I am watching for the MACD cross which has not yet occurred. We bounced the RSI and broke above a 10-day EMA but until we can get the MACD cross I think, which could be at the completion of the inverse H&S, we need to stay cautious. I did start scaling back into LTC last night between 188-195. I will probably bring more in if we fall back to the 200-205 and level out as the right shoulder develops. If it doesnt level out in the range, I will assume we will be seeing another drop back to support at 180 before the bounce and will start scaling in a larger position between 180-185. I actually have buy orders set in $5 increments between 130 and 185 right now. I am still new to this and have plenty to learn so I would love any feedback!
Comment:
So far things are playing out the way I thought they would. We are halfway through building the right shoulder of the inverse H&S pattern. We have not shown oversold on the RSI yet which shows there is still room to move to the upside to complete this pattern. As we gradually gain footing here, I am keeping my eyes open for the bullish cross on the MACD. If that plays out we should see a push through the previous resistance levels at 215 and 237 and attempt my first target of 240-245. With Litepay right around the corner, and IF BTC STAYS STRONG, I think 285 to 290 is quite realistic in the short term over the next week or so. Litecoin has been the leader during this correction and I don't see any reason why it won't continue to be. Ill be watching like everyone else ready play!