Litecoin remains in our bullish channel. However, it continues to sink lower and lower towards the bottom. We've managed to break below our middle Bollinger Band and our 50 MA. As we near the bottom of our Bollinger range, we are also approaching a $38 support level. Since the $38 support and the bottom Bollinger intersect at this point, if we travel down here in the next day or so, it may provide enough of a boost to hurdle us through the downward sloping RED trendline that we've been under since July 4th.
Our Bollinger Band is contracting AND we have been in a coil pattern (symmetrical triangle) for the last month. This indicates to me that when we break out, the break out will be significant! Since we remain in the bullish channel, probability suggest the breakout will occur to the upside, as it usually follows the current long term trend. However, caution is to be exercised until confirmation is made indicating the direction of our next move.
You wouldn't be wrong to remain long on LTCUSD here, however, ensure your trailing stops follow the bottom GREEN bullish trendline upwards and adjust daily.
Fundamentally there is a possible reason behind its potential rise this August, that is simply demand. Bitcoin lack of clarity to users, plus transaction problem during early August due to the need for extra confirmation will IMO help increase the demand for Litecoin. Especially for the purpose of transfering and doing daily transactions after exchanges are starting to open.
Thanks for sharing as always Phil :)
stewdamus
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@nafnar, And thank you, as always, for your engagement and reasoned comments.
i_am_noone
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Break out will be soon. Day chart needs 1-3 days.
stewdamus
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@MertB, I show we could still go as many as 7-10 days and still be in our symmetrical triangle or coil pattern.
Thanks for sharing as always Phil :)