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 after the rally on the 18th, LTC created a bull flag consolidation, much like the one that I highlighted on my BTC post this morning. Price was able to surpass the 50 EMA (in orange,) but it has not yet created a higher high. You can see that a breakout of the bull flag has occurred on this current candle, and LTC is attempting to close above the 50 EMA. If LTC can manage to continue trading above the 50 EMA, it will be the first time that has been done in several weeks.
You can see that the projection from the bull flag extends above the 200 EMA (in purple.) So, the 200 stands in the way of further advancement, since it is a significant resistance level. With that said, if LTC is able to surpass the 200 EMA, we should eventually see a test of the top of the symmetrical triangle (in black.) Speaking of which, I would like to introduce you to that formation, since it is new on my chart.
Looking from the left side of the chart, you can see that LTC was trading in a low range, before it exploded to the all time high. Since then, we have been trendline sideways, forming a symmetrical triangle in the process. Symmetrical triangles are generally continuation patterns, but like all other formations, we need to see a breakout to confirm the overall direction that it will take us. With that being said, this formation is massive, and whatever direction it breaks, could be a substantial indication as to the overall direction of the medium-term future for LTC. Many of you know that I have a year end price target of $600 for Litecoin. So, an upside breakout of this symmetrical triangle, will be a nice step in helping us reach that target. On the other hand, a breakdown from this formation, would probably destroy the chances of $600 being reached. The breakout, up or down, will occur by April 16th, at the very latest.
On the MACD, we're still working over a bullish crossover, and we've crossed over the zero line, which is a technical buy signal. Volume was falling, confirming the consolidation pattern inside of the flag, but we have now gotten a buy-side volume spike that adds credibility to the bull flag breakout. Good luck trading everyone!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
Let's just get LTC to take out BCH and jupiter will be the limit
DonJackson
⋅
Solid work MPC. Curious to see who gets April fooled!
regalia
⋅
What's up MPC been following and studying your charts. On your last LTC TA you were bearish. Now you are bull :P? haha A little bit confused. You and D4 use clickbait titles but when I read your TA's you keep flipping back and forth as soon as the market turns. I think you are losing your Ego Juice as of late.
Anyways take a gander at my TA :P Called it a week ago and it played out perfectly, right on the line.
prefabsprout
⋅
@regalia, "On your last LTC TA you were bearish. Now you are bull :P? haha A little bit confused."
so MPC here's how it works: even though we are in a volatile market constantly changing directions up and down wildly, it's expected, nay required*, that you pick a side, either bull or bear, and stick to it. even though that will guarantee you and your followers quickly go broke. got it?
bpwphoto
⋅
@michaellanducci, lol bingo
DonJackson
⋅
@michaellanducci, I think that's a pretty unrealistic request. The objective of TA is to define probabilities. The volatility in this space makes it near impossible to stick to a side and "stick to it". Those who do are often wrong, leaving followers in the dust. Giving followers probable shifts allows them the opportunity to explore the reasoning behind said movement, do personal research, and ultimately pick their own side. After all, we control our own money and make our own decisions.
@michaellanducci, He does this all the time. I listened to his commentary a few days ago and sold. And lost out yet again. Third time is a charm. I need to move on.
mrbrown66
⋅
@regalia, You muppet, don't give him reason to berate you in his next post, I'd rather keep him focused on quality TA.
Regera
⋅
@regalia, The market is unpredictable. Anyone who thinks they can predict the market are lying to themselves and might as well flip a coin. For all the reasons they think it will go one way, there are another set of reasons (that may not be revealed until after the fact) that could move the market in the other direction. No one is going to get every single call right. I didn't particularly care for MPC's style when I starting following him but after I studied his method, it's pretty solid. I don't know what his bearish LTC outlook was but he called BTC's head and shoulders before the last shoulder had peaked around 11.5k. From there he called a $6,000 bottom (I called for $7,200) and I think the market went down to 7300ish before it's back to where it is now. Does that make me better than him or vice versa if it went to 6k? Regardless of who you think is better, here's the important thing: better doesn't matter. Predicting the market doesn't matter. Identifying market trends real time and trading accordingly to make money and reducing loss of principal is what matters. So does our called bottoms matter? Not really, because at the end of the day we sold high (or at least I did) and reentered low and that is the name of the game. There's no trophy for "Greatest IRR" or anything of the sort. I know people who make much better IRRs than I do. However they're trading a much smaller portfolio so they can enter and exit with ease. I'm no whale but I'm moving heavier weight and I can't dart in and out, multiple times without risking slippage or getting caught with my pants down. Going back to MPC his method is solid. He IDs trends in both directions, offers signs for confirmation and uses proper risk/reward stoplosses. Over time using that system will churn out more profit than losses. No need to be a bear or a bull, that's not something the average investor needs to think about. The advantage for small investors is that they can enter when it's hot and exit before it gets cold. Ride the slipstream of the bigger fish. Try doing that with millions or billions of dollars.