Hi friends! Welcome to this update analysis on Litecoin! Let's jump right in! Looking at the four hour chart, we can see that LTC continues to test the pink support level, as it consolidates in a sideways trading range. The 50 EMA (in orange,) is falling toward the price action, so it may be the final straw, that helps LTC break the pink support level. We can see that the 50 EMA has repeatedly acted as resistance, and that should continue to be the case. On the MACD, we can see that momentum is rolling over, and may soon cross over bearish, adding to the likelihood of continuation selling. Volume is unimpressive, as traders wait for a clear move in one direction or another.
If you recall, from one of my previous LTC posts, I masterfully recognized a correlation between bearish momentum crossovers, suppressed volume, and corrective moves. In the post, I said "You can see that each time a volume trough was made on the chart (red arcs,) which corresponded to a bearish crossover on the MACD (red circle,) a corrective move followed." Looking at the current LTC chart, we can see that we have suppressed volume, but haven't yet gotten a full bearish crossover. If the bearish crossover occurs, we can expect that a corrective move will ensue, based on this remarkable repetitive pattern. On the downside, initial support lies at the 78.6% retrace. A break below that, will open the door to about $128, and then the bottom of the blue channel. On the upside, resistance should be found at the 50 EMA, and then the "critical resistance" level.
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.***
Poopsie, I am beginning to think you may be a whale in bear clothing! Nonetheless, you've been a great teacher of pattern recognition in the six weeks I've been looking at the crypto space. It was a crazy time to become involved; I gained some...and then lost some more. Your updates have brought some entertainment and strengthened my patience.
MagicPoopCannon
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@BethanyJoy, It is a pleasure to be at your service.
-Poopsie-
OrunmilaDjehuti
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How long have you been studying TA? Did you start with stocks, commodities, forex, etc., or did you start with crypto?
MagicPoopCannon
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@OrunmilaDjehuti, I’ve been studying technical analysis for nine years. During that time, I’ve traded commodities, stocks, options, bonds, forex, and most recently, cryptocurrencies. Thank you for the question. Good luck trading!
OrunmilaDjehuti
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@MagicPoopCannon, that's quite the resume. I've been studying TA for less than a month...LMAO. I'll keep at it until I reach legendary analyist level like you. I'll be even cockier than you once I get there ha ha ha! There's good traders on here, but your skill is impeccable, I must say.
@OrunmilaDjehuti, yea, thats what I was thinking awhile ago. I wish I could just watch his screen and match his moves.
OrunmilaDjehuti
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@piatt.jesse, I understand what he's doing on his charts...it's the insight that I lack. He really knows his shit and puts all the variables together well.
piatt.jesse
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@OrunmilaDjehuti, yes he does, following him has strengthened what I have slowly been learning over the last year. Now I chart my stuff and then compare it to his to see If i messed up.
OrunmilaDjehuti
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@piatt.jesse, yo that's a great idea. Think I will try that...