From our post yesterday. There is a clear (3) wave count here for which we have a shorter term target of 197-210 for the completion of wave 1 on the weekly chart above. Litecoin is currently testing the long term resistance / support level along with the high of wave (3). What we are looking from a positional standpoint is confirmation that we are in a bullish move towards our target area. If we can break through the 166 level and 164 becomes support where we get a continuation move to the upside, we could look to add a swing trade here. These are higher risk then trading out of support but these breakouts can sometimes be strong moves. Stops would be set just under the support resistance level.
There is still the possibility we are just completing the B wave of a three leg ABC corrective sequence, and we simply pullback from here. If the trend line does not hold then we will look to the lower support zone of 138-145 for a bullish reversal. If the trend line holds and we can still get a bullish reversal signal that takes us through resistance.
Summary: We have been patiently waiting for the market to provide direction, and trading just to trade leads to portfolio erosion. As long term investors / traders we are looking for quality trades over quantity. If LTC' keeps moving up so does our portfolio. These types of resistance levels look tempting but unless we break through with conviction or pullback to a support zone “no trade” is still the best trade. Eventually something gives and we will be risk on once again.
There is still the possibility we are just completing the B wave of a three leg ABC corrective sequence, and we simply pullback from here. If the trend line does not hold then we will look to the lower support zone of 138-145 for a bullish reversal. If the trend line holds and we can still get a bullish reversal signal that takes us through resistance.
Summary: We have been patiently waiting for the market to provide direction, and trading just to trade leads to portfolio erosion. As long term investors / traders we are looking for quality trades over quantity. If LTC' keeps moving up so does our portfolio. These types of resistance levels look tempting but unless we break through with conviction or pullback to a support zone “no trade” is still the best trade. Eventually something gives and we will be risk on once again.
Comment:
Oops here is the long term chart.
Bitcoin is entering a 5th wave of a longer term cycle, and litecoin is entering the same. Longer term (time is not relative to the chart) we have a 527 target level, however, if we see ETF’s and the likes of Goldman Sach’s enter the space this is likely a conservative target and we can get there very quickly. The path here is to provide us some guidance where we can likely expect a pullback for positioning. This is NOT a Google map it is a guide for positioning.