Yesterday Litecoin broke its upward channel and tested support at 98 (blue line) which was also a 0.618 retracement level. From here the 1H chart is showing bullish divergence. A simple strategy to use with divergence is to play the trend line breaks of BOTH the price action trend and the RSI with confirmation from MACD. My target would be a back test of the upward channel's bottom trendline at $117.60, if we break above we may be able to resume our upward channel.
Here's why I think this move is a strong possibility:
-Price action trendline broken
-Bullish Divergence on RSI
-Trendline break of RSI
-MACD confirmation
-This bounce happened at support and the 0.618 Fib level
Set stop loss slightly below the lowest wick of the last swing low.
Please feel free to share your ideas or comment!
Here's why I think this move is a strong possibility:
-Price action trendline broken
-Bullish Divergence on RSI
-Trendline break of RSI
-MACD confirmation
-This bounce happened at support and the 0.618 Fib level
Set stop loss slightly below the lowest wick of the last swing low.
Please feel free to share your ideas or comment!