LTCUSD update: Consolidation break out attempt at the 60 level. Compared to the other coins, this market takes much longer to make significant progress but is worth mentioning because a minor retrace can offer attractive reward/risk for a swing trade long. Also this breakout can be the beginning of a broader bullish movement.
The 60 level has been the range high resistance for a number of weeks now and has finally been compromised. What makes this break out compelling is the higher low formation at 53.35 and the resistance break at 56. These are bullish formations that imply this breakout has a good chance of following through.
This may also be the beginning of the breakout of a very large degree Wave 2 which this market has been stuck within for weeks. Potential near term targets for this move are 65.22 and the 72 area which are both extensions projected from the recent 49 low.
Using the 53 level as a reference point to define risk, any minor retrace that stays above the 56 break out level offers attractive reward/risk for a swing trade long. The 58.35 level is a minor .382 measured from the 53 higher low offers a potential reference point for entry. Often on breaks outs like this retracements are shallow if this market is truly strong.
My plan is to wait for a minor retrace to somewhere between the 58 and 60 level and look for a small time frame reversal. Using 53 as a reference point for a stop, if I get long at an average price of 58.50 let's say, and my first target is 65, I am risking 5.5 points to take some profit at around 7 points which give me a slightly higher than 1:1 reward risk.
Compared to the immediate potential of the other coins, this market is not as exciting, BUT it has certainly been more stable and if this is a broader range break out, it has the potential to run to the low 70s which makes the trade idea much more worthwhile.
This is also the type of coin that is an attractive long term hold (as long as some other coin doesn't come in and make it obsolete). So if I manage to get some on a small retrace in the high 50s, I do intend to keep some as part of a core position which has no near term target. (Multi year play). I do like the fundamental story behind this coin and I think it has merit for usability in the future (but I will get out immediately if something better comes out. Cannot get stuck on any opinions ESPECIALLY in these markets).
In summary, this market is much quieter and more stable in terms of price action. Often there is not much to say, but today's move could be the initial break out and beginning of a much broader trend that can take price to at least the mid to upper 60s. It is worth mentioning because any shallow retrace will offer reward/risk that is attractive according to my plan. Remember IF it pulls back, there has to be some form of reversal pattern to justify entry on a smaller time frame. If price retraces further and fast and falls back below 56, then that will imply this move is a fake out, and I will reevaluate the entry. In the longer term I think this coin still offers a lot of potential and is certainly one that I want to accumulate if it begins working it's way higher on the big picture. Markets always retrace to some degree, so there is no reason to get overexcited and buy into the top of the breakout. Let the market come to you.
@halcy0n9001, thank you for the compliment. This appears to be one of the biggest challenges for new traders. Waiting for the market to meet their criteria. Eventually you learn.
halcy0n9001
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@MarcPMarkets, I'm only new to trading / investing (3 months old now).
But I'm very grateful to have found you, goldbug and a few others who put effort into their posts that help people who are willing to learn understand the right mindset for trading, which I believe is actually the foundation for long term success (not just for trading, but also in life).
As a newbie it seems counter intuitive to go against emotion and stick to the plan, which many times just means waiting and watching. Your posts are great at explaining why waiting should be part of a strategy, especially when your brain is screaming 'Do something! You are missing out!' :)
Thanks as always.
MoonPickle
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@MarcPMarkets agree with you that LTC has a lot of potential, as a digital currency for quick monetary transactions.
seems like LTC is headed back into support zone - slightly below $60, where it will range and idle.
this current breakout is not yet the rocket ride up.. SOON!
MarcPMarkets
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@MoonPickle, thanks for sharing your perspective. What do you think this the primary driver for this market to start outperforming the others?
MoonPickle
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@MarcPMarkets, no worries, LTC needs to break away from BTC's shadow, in terms of market performance. underlying drivers/factors for that to happen may not have to do with the actual value/versatile applications of the coin, unfortunately at the moment
though ETH and LTC are due for a breakout soon, it seems to be
Troy_Brave
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Love this coin! Went in heavy at $50. It was a long term trend line from the beginning of the year. High 69 is a good target 1 and then 79 a good target two IMO.
MarcPMarkets
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@Troy_Brave, nice hold. It is a slow one, just have to be patient with it. I am always on the look out for any coins that can make this one obsolete.
This should be a mantra!