Hi friends! Welcome to this update analysis on Litecoin! WOW! As you can see, LTC dropped to the $107 handle, slightly above the $105 target, and has bounced nicely! It's currently printing a bullish engulfing hammer
candle, and you can see that the MACD
is starting to round to the upside. Additionally, we can see that buy-side volume
is surpassing the red volume
on the chart, signaling strong buyer involvement. Perhaps this is the move, that brings a close to the bear market. I actually took my first long position in a while at $108.50. I do realize, however, that there is a lot of work that needs to be done. We have a lot of overhead resistance, and technically, the bears are still in control. We can't technically confirm that a trend reversal has occurred, until the top of the downtrend channel
is surpassed, and we start to print some higher highs and lows. As you know, I always say "never try to catch a falling knife." However, there is a strong reaction off of my long awaited downside target, and, personally, I was willing to go long there. With that said, I do have an exit strategy. If LTC takes out my $105 target, I'm out. Furthermore, as gains begin to accumulate, I will probably bring my stop level higher. You can see that the current bullish engulfing
candle is running into the bottom of the last bear flag
. It's catching a bit of resistance there, which is expected. We now need to watch closely, to see how LTC reacts to these overhead resistance levels. Ideally, I'd like to see some strong follow through to the upside, to take us up to test the bottom of the downtrend channel
. Watch this action very carefully, because if LTC begins to head lower, it would take out my target level, and turn to test the bottom of the downtrend channel
. Good luck to you all!
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.***
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