The 50 EMA Pimp Slaps Litecoin! (LTC) Files Restraining Order =D
Hi friends! Welcome to this quick update analysis on Litecoin! All I can say right now, is the 50 EMA is a mofo! If you look at the four hour chart here, you can see that (except for one occasion) LTC hasn't successfully traded above the 50 EMA (in orange,) since the major rally to the all-time high. This is a bit concerning, considering the unusually optimistic analysis that I published yesterday — especially since LTC is currently being rejected by the 50. You can see that the 50 EMA and the 78.6% retrace were converging, and when you see that, it usually indicates a strengthening of that particular level. The MACD is starting to flatten out, and it looks like it wants to roll over, while the volume is beginning to decline. I'm going to be real with you, the analyst inside, is ripping me apart. Deep down, I knew that we would run into trouble at the 50, which is why I over-emphasized the hypothetical nature of yesterday's analysis. With that said, I am hugely interested in this formation, because double and triple bottoms usually indicate a longer-term reversal in a market. So, let's throw this bad-boy under the microscope, and see if it meets the double bottom requirements.
1. Did the first trough produce the lowest point of the current trend? No
2. Was it within 3%? Yes
3. Did we see low volume off of the reaction high? Initially, yes.
4. Are volume and buying pressure accelerating off of the double bottom? Yes
5. Have we seen a resistance (pink trendline) break? No
6. Is there a stall that is not impressing the MagicPoopCannon? Yes.
In short, LTC had better get it's a$$ above that 50 EMA, or this may not be a double bottom. Remember friends, never ever trade a pattern until you see the breakout. In this case, the breakout level is at the pink trendline.
This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, comment, like, and share on social media. Good luck trading everyone!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-MPC loves you-
-JD-
1. Did the first trough produce the lowest point of the current trend? No
2. Was it within 3%? Yes
3. Did we see low volume off of the reaction high? Initially, yes.
4. Are volume and buying pressure accelerating off of the double bottom? Yes
5. Have we seen a resistance (pink trendline) break? No
6. Is there a stall that is not impressing the MagicPoopCannon? Yes.
In short, LTC had better get it's a$$ above that 50 EMA, or this may not be a double bottom. Remember friends, never ever trade a pattern until you see the breakout. In this case, the breakout level is at the pink trendline.
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.***
-MPC loves you-
-JD-