Hi friends! This is a quick update on Litecoin! I know a lot of my followers hold LTC, so I want to drop a quick update. You can see that LTC has reversed course, as BTC reversed it's breakout of the inverse head and shoulders pattern. Technically, this movement does not invalidate the inverse head and shoulders pattern on the LTC chart. However, LTC is approaching some important levels of support. You can see that it is currently testing around the 200 EMA (in purple) and it is actually trading below it at the moment. Just below that, is the 61.8% retrace. With that said, it's really important to pay close attention here, especially if you are long. If LTC continues to break down from here, and particularly, if we get below the low on 2/23, there could be some rapid selling that ensues.
On the MACD, you can see that there has been a weak bearish crossover, and the MACD has fallen below the zero line, which is a technical sell signal. However, I wouldn't read into it too much, unless we see a continuation below the 61.8% retrace, and the 181.80 level especially. Looking at the current candle, we appear to be printing a nice little hammer, and price is back above the 200 EMA, so we could find support around here.
If you remember from a few posts ago, I highlighted how the left shoulder, the head, and the right shoulder, all appear to have generally ascending lows. The fact that we may be finding support around here, would keep that rough trend in place. Overall, the inverse head and shoulders pattern is still valid, and in the midst of development. However, keep an eye on the downside risk, in case LTC begins to roll over. On the upside, a confirmation above the 50% retrace, at about 228.15, would be very bullish. 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.***
-Magic loves you-
-JD-
On the MACD, you can see that there has been a weak bearish crossover, and the MACD has fallen below the zero line, which is a technical sell signal. However, I wouldn't read into it too much, unless we see a continuation below the 61.8% retrace, and the 181.80 level especially. Looking at the current candle, we appear to be printing a nice little hammer, and price is back above the 200 EMA, so we could find support around here.
If you remember from a few posts ago, I highlighted how the left shoulder, the head, and the right shoulder, all appear to have generally ascending lows. The fact that we may be finding support around here, would keep that rough trend in place. Overall, the inverse head and shoulders pattern is still valid, and in the midst of development. However, keep an eye on the downside risk, in case LTC begins to roll over. On the upside, a confirmation above the 50% retrace, at about 228.15, would be very bullish. 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.***
-Magic loves you-
-JD-