LTC Looking to Confirm Reversal

Updated

It has been awhile since I posted but had a little time to really dig into LTC and thought I would share. The crypto bear market that began in late December seems to have shaken out a lot of those that jumped in just a few months before and right now everyone is looking for reasons to jump back in, even for a short to mid-term trade. I think we may be getting very close to that at this point but I remain cautious that it would only for the short to mid-term because major trendline resistance from January still remains in play. If you look at the daily chart you will see that we had a bouble-bottom reversal that seems to have given us a few days now of positive movement. Volume remains low however. TD Countdown is showing a possible exhaustion in downward movement just before the double bottom played out, which is a good indicator that we may have, or are very close to finding the bottom of this bear trend. If you zoom out back to January on the daily, you will notice that the countdown did not start until, April 6 and ended on May 23rd. The double-bottom reversal occurred at the major horizontal support (Blue Line) formed from the bottoms of February 5th and April 1st confirming the blue line as a major support. We have bounced off of that and are now heading into a convergence of several major trend line resistances. RSI is currently at 43 showing we still have more upside to go and the MACD is poised for a crossover this weekend leading into those major trend line resistances. I have highlighted the area I am watching and am looking for a daily close above $127 and a break above those resistances before going long.

I would appreciate any feedback anyone has regarding my analysis.

***This information is not a recommendation to buy or sell. It is to be used for educational & discussion purposes only.***

Note

We have hit the crucial area of resistance. We have tested the main downtrend line once and the bulls are trying to hit it again. The volume at this point still is not there for a strong push to breakout. We are also trying to complete the right shoulder of the inverse which could encourage increased volume. My biggest concern right now is that this is the 5th green daily candle in a row. I think we need a slight retracement with the next candle to create enough opportunity to push through these lines of resistance. So to recap, I am looking for a slight pullback and then a close above $127 to go long. If the bulls don’t make that happen, I’m afraid the bulls will push hard enough to take us back to the $110-$115 area.

Note

This morning we have woken up to the pullback I was hoping for but it also currently is taking us below the newest trend line support originating at the possible reversal. If I wanted to take on additional risk and decided to jump in at a low price right now at $121.00, I would be setting my stop loss at $118.58, hoping that this candle did not fall lower than the one proceeding it. However, because we are already touching the resistance lines with the last three candles and still no increase in volume, I will continue to sit patiently waiting for that close above $127 at least for the next couple of daily candles.

Note

Daily pullback just as expected...

Note

On the 4 hr, TD Setup showing downtrend exhaustion followed by a small push back up and increasing volume...Might be an opportunity to take a little before we get back into that resistance

Note

On the 1 hour chart, we are seeing an ascending triangle and are nearly 3/4 of the way through it. A breakout for a small upward movement may be imminent. Still remaining cautious on the downside though....

MCassICT

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