LTC Throws Bull Signs While BTC Throws Bear Signs — LITECOIN! =D
Hi friends! Welcome to this update analysis on LITECOIN! Let's get right to it. Looking at the four hour chart, you can see that LTC fell from the bear flag that I published on my last analysis, but the downside target of 137.50 has not yet been reached. With two formations (the triangle and the bear flag) yielding full potential retracements down to the same level (137.50,) it is a compelling situation that suggests further downside. However, patterns don't always rally or correct to their full potential. Yesterday's low, could very well be the lowest point of this move.
As you can see, LTC appears to be forming a nice bull flag, which (when coupled with the consolidation in the bear flag on 7th and 8th) could also be forming the right shoulder of an inverse head and shoulders pattern. The only problem that I see with this thesis, is that Bitcoin has created another bear flag, while LTC printed a bull flag. Furthermore, BTC has already started to break down from it's newly formed bear flag, but the downside appears to be catching immediate support on the pink trendline (BTC chart.)
As I'm writing this, BTC is printing a more severe breakdown from it's bear flag, and the potential bull flag on this chart, is really pushing into the bottom of the flag, so we may see a breakdown here. Regardless, this is still a bull flag, until it fails and breaks down. Given the current look on BTC, I'm starting to think that this bull flag could fail, but what I "think" is irrelevant. I read the charts, and this chart currently says bull flag.
You can see that resistance is falling into the bull flag, in the form of the 20 EMA (in blue) and then the 50 EMA (in orange.) The 50 EMA is also converging with the 61.8% retrace, so that level could be particularly resistive, if LTC makes it's way up there. On the MACD, we're working over a bullish crossover, but the momentum is beginning to flatten, as the volume shrinks, which is typical to see during flag consolidations.
Overall, we're in a bull flag, that has immediate resistance overhead, while Bitcoin is in the process of breaking down from a bear flag, with support just below. In LTC, we need to watch this flag, and wait for the breakout, to determine real guidance on the forward price action. The downside target was not reached, so if this flag breaks to the downside, the 137.50 handle could be the final stop. A breakout to the upside, combined with a break above the 618, would put a retest of the 227.60 level in play.
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-
As you can see, LTC appears to be forming a nice bull flag, which (when coupled with the consolidation in the bear flag on 7th and 8th) could also be forming the right shoulder of an inverse head and shoulders pattern. The only problem that I see with this thesis, is that Bitcoin has created another bear flag, while LTC printed a bull flag. Furthermore, BTC has already started to break down from it's newly formed bear flag, but the downside appears to be catching immediate support on the pink trendline (BTC chart.)
As I'm writing this, BTC is printing a more severe breakdown from it's bear flag, and the potential bull flag on this chart, is really pushing into the bottom of the flag, so we may see a breakdown here. Regardless, this is still a bull flag, until it fails and breaks down. Given the current look on BTC, I'm starting to think that this bull flag could fail, but what I "think" is irrelevant. I read the charts, and this chart currently says bull flag.
You can see that resistance is falling into the bull flag, in the form of the 20 EMA (in blue) and then the 50 EMA (in orange.) The 50 EMA is also converging with the 61.8% retrace, so that level could be particularly resistive, if LTC makes it's way up there. On the MACD, we're working over a bullish crossover, but the momentum is beginning to flatten, as the volume shrinks, which is typical to see during flag consolidations.
Overall, we're in a bull flag, that has immediate resistance overhead, while Bitcoin is in the process of breaking down from a bear flag, with support just below. In LTC, we need to watch this flag, and wait for the breakout, to determine real guidance on the forward price action. The downside target was not reached, so if this flag breaks to the downside, the 137.50 handle could be the final stop. A breakout to the upside, combined with a break above the 618, would put a retest of the 227.60 level in play.
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-
Komen:
And there you have it...
