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 LTC has continued to find resistance at the top of this big weird bear flag that I've been covering. With that said, the price action inside of the flag body could potentially be bullish. A case can be made for an inverse head and shoulders or a cup and handle, but the overall formation still appears to be a bearish consolidation. In fact, if we were to look at the daily chart, the price action resembles a bear flag even more, and usually the larger formation will trump smaller formations inside.
As you can see, LTC is attempting to catch some support right here, as it tests the 20 and 50 EMAs. So, I think the best thing to do, if you aren't already trading LTC, is to wait for a breakout above the top of the flag, or below the bottom of it. If you wanted to be more aggressive, you could also short a confirmed breakdown below the 50 EMA, as that would likely put the bottom of the flag in play, at around 110. If price holds support here on the MAs, we could easily see another retest of the top of the flag. So, I would be cautious right now, because there are some conflicting indications. The name of the game is to wait for proper setups — not to be involved in every movement of the market.
I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic! Au revoir.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
@panconpalta, it is a nature of a prolonged rally that most of the folks missing it.
TradeRepository
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Litecoin bitch slapped magicpoopcannon I think.
Timothie_Roggers
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lol I like how poop doubled down on before it broke upwards. next analysis "MY analysis gets PIMP SLAPPED by simple failure to look at LTCBTC chart!!!"
somanystreams
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@Timothie_Roggers, no, he's gonna spin it to try and say he was right the whole time. won't be surprised if he redraws his "bear flag" again to show it's not reaching the top of it as he usually does.
It's interesting because I bought at 125, sold at 130 a few days ago, bought back at 127 yesterday and was seriously considering selling at 133 to take a 6 point gain before it fell again. Trading sideways can be profitable. The problem with that is if you believe a breakout may come to the upside, 6 points pales in comparison to missing a 25+ point gain. That is where I have concerns with your analysis. How far does it have to break to the upside where you become bullish and say it's time to buy? LTC has lagged and I think it is due for a gain, just like ETH.
TomPower
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@smashfootball, well got all the gurus like this guy telling me to wait for bullish confirmation. ie BTC trading 8600, ltc 140, ok great but what do i do in the meantime.
knowlton23
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@TomPower, We have not even broken out of the long term downtrend channel yet. For many traders, the best move would be to wait until the breakout happens. Yes, you would have missed the bottom. Yes, you would have missed a lot of upside. But what would you gain? An entry point with minimized RISK. It's all about the trade offs, not everyone has the same risk appetite.