Keep Calm And Trade On — LITECOIN! (LTC)

Welcome friends to this update analysis on LITECOIN! Let's get it! Looking at the four hour chart. you can see that LTC fallen below the bull flag AND the 50 EMA (in orange) — not a good look. Bitcoin's breakout reversal is dragging LTC down, but support lies just below, at the bottom of the pink uptrend channel. By the time LTC reaches the bottom of the channel, BTC should be reaching substantial support as the 50 EMA and the 200 EMA cross over bullish on it's chart. BTC's actions will likely determine what happens with LTC. If BTC drops below those two moving averages, LTC will probably breakdown from the pink uptrend channel. However, there currently is no evidence of that happening. If you take a look at the volume on this chart, you can see that it's mixed. The most recent selling action hasn't been overly impressive, in terms of volume, but the MACD has crossed over bearish, and is expanding to the downside. For educational purposes only, if your long, and you want to mitigate your downside risk, you could place a sell stop slightly below the pink uptrend channel. That way, if the channel is broken, you could exit your position until more favorable bullish developments emerge. With that said, I've noticed that LTC may be building a huge inverse head and shoulders pattern, which corresponds with the same look in Bitcoin. You can see that even if we do break below the uptrend channel, support rests at the 61.8% retrace. Interestingly, the 200 EMA (in purple will be converging with that level soon, so it's possible that we could trade down there, if LTC decides to break this uptrend channel and build this hypothetical right solder. I know that this proposed inverse head and shoulders pattern isn't very pretty, but it fits all of the general characteristics of the pattern, and it corresponds with the cleaner pattern on BTC. Technically, we may be in the midst of an impending bullish development, but you have to use your own risk tolerance to determine how much downside you're willing to endure. If we break the channel, LTC should find some support at the 200 EMA and the 618. Below that, things could get REALLY ugly. For now, I want to get this out, before it's too late. I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic. Au revoir.

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:

LTC is FIGHTING to stay in that channe, but it kind of looks like it's building a bear flag at the moment. BTC is bouncing now, and the rest of the market is moving with it. I think BTC could have a little more upside, which could keep LTC inside of the uptrend channel. Things are getting very interesting, and believe me when I say, the entire market is focused on Bitcoin.

-Magic-

Comment:

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