In comparison, Bitcoin also formed a pattern, but it has broken out to the upside, in a move that appears to be negating it as a . So, based on the performance of BTC , we may see a similar outcome in LTC. That, coupled with the pattern, inside of the , suggests that an upside breakout is possible. Furthermore, we can see that the is about to cross above the zero line, which is a technical buy signal.
Since there is really a conflict of signals here, and we're getting sustained resistance at the 50 , we can use the 50 to monitor the short term progress of LTC through the flag. You can see that two of the past few candles have pierced the 50 , but they found resistance at the 61.8% retrace, which is just above. So, clearly we have a zone of resistance levels, inside of this , and that typically increases the likelihood of a breakdown. With that said, if we get above the 200 (in purple) that would clear likely send LTC up to the top of the . Alternatively, if we see a breakdown of the , LTC is very likely to fall to the , at about 146, and then potentially to the 137.50 level.
I have actually been long since the green candle on the was formed, on the 9th , in anticipation of a move higher. If we don't see sustained follow through here, and particularly, if we see a breakdown of the , I will quickly flip, and short LTC to my downside targets. Until then, I will remain in what has become an uncomfortable long position.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-Magic loves you-