LITECOIN Stuffs Napkin in Shirt, Preps To Use Fork Like A BOSS!

Hi friends! Welcome to this update analysis on Litecoin! Well, the hard fork is just around the corner, and LTC is looking strong on the four hour chart. I've zoomed into the current price action, so that you can see exactly what is happening here. Inside of the big bull flag, LTC is actually forming a textbook cup and handle pattern. It has managed to get back above the 50% retrace, and LTC looks like it's ready to break to the upside. Volume has fallen, and the MACD is rolling over, but that is typical to see during a flag consolidation. With that said, it isn't wise to trade a flag, until we see a breakout. There have been several bull flag setups in LTC that recently broke to the downside, but they were occurring during the bear market correction. Since we are in a new uptrend, the likelihood is that we will see a continuation higher. We've been trading in this flag for a while now, and I have covered it as a flag since the second down candle, but this new development was worth sharing. Additionally, you can see that the 20 EMA (in blue) is quickly rising into the flag, and is corresponding with the mid-line of the uptrend channel, which strengthens that level as support. To recap, we have a big bull flag, with a cup and handle formation inside, that has significant support just below the current price action. If a breakout does occur, I would expect the top of the uptrend channel (in pink) to act as initial resistance, followed by the 38.2% retrace, at about $262. A breakout above the uptrend channel would be extremely bullish, and it would put the 23.6% retrace, at $303 in play. As I'm wrapping up, LTC is continuing to flirt with the 50% retrace. We will have to see if it holds, and if this cup and handle can produce a bull flag breakout.

This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, comment, like, and share on social media. Good luck trading everyone!

***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***

-MPC loves you-

-JD-

Comment:

Well, that cup and handle isn't looking so cup and handle-like at the moment. =D

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BTC is moving lower and LTC is moving in lockstep with it.

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The LTC Update is here!