The Rise of LTC: A Technical Analysis (Binance)
Hello fellow traders!
Let's get right to it as this is happening as I type.
Looking at the 1 day charts I want to point out a few things. In orange I have a mega downtrend line that was causing so much angst over the last two months. The yellow circles are failed tests of the 61.8% retracement line, which will soon be acting as resistance for a very recent bullish break out. The light blue channel has formed since the double bottom reversal confirmation (which has been talked to death by others so I will leave it out here). And lastly in white I have a recent pennant flag pattern that has appeared. Notice also the rising RSI indicator is nearing the oversold range but it still has room for a push further upward. The MACD is still showing plenty of bullish divergence however the fast and slow averages are beginning to converge slightly.
Below, I have zoomed in to look at the 1-hr candles more closely. I have plotted an impulse wave to the chart to show possible movements in the near future. Based on some guidelines I use when plotting elliott waves I expect wave 4 to be a much sharper decline than we saw for the flat decline of wave 2 earlier in the movement and the end of wave 5 to land directly on the 61.8% retracement line mentioned above. Further backing my theory are the 25 & 100-EMA rising up to act as support for the coming fall.
Once I am sure of the height with which wave 3 & 4 end, I shall be able to predict a possible next peak. Either way we can expect the 61.8% retracement to endure a few tests before LTC is able to break out further upward.
As always, have great days or nights, where ever you are. Trade Safe. Trade Smart.
Let's get right to it as this is happening as I type.
Looking at the 1 day charts I want to point out a few things. In orange I have a mega downtrend line that was causing so much angst over the last two months. The yellow circles are failed tests of the 61.8% retracement line, which will soon be acting as resistance for a very recent bullish break out. The light blue channel has formed since the double bottom reversal confirmation (which has been talked to death by others so I will leave it out here). And lastly in white I have a recent pennant flag pattern that has appeared. Notice also the rising RSI indicator is nearing the oversold range but it still has room for a push further upward. The MACD is still showing plenty of bullish divergence however the fast and slow averages are beginning to converge slightly.
Below, I have zoomed in to look at the 1-hr candles more closely. I have plotted an impulse wave to the chart to show possible movements in the near future. Based on some guidelines I use when plotting elliott waves I expect wave 4 to be a much sharper decline than we saw for the flat decline of wave 2 earlier in the movement and the end of wave 5 to land directly on the 61.8% retracement line mentioned above. Further backing my theory are the 25 & 100-EMA rising up to act as support for the coming fall.
Once I am sure of the height with which wave 3 & 4 end, I shall be able to predict a possible next peak. Either way we can expect the 61.8% retracement to endure a few tests before LTC is able to break out further upward.
As always, have great days or nights, where ever you are. Trade Safe. Trade Smart.