LTCUSD: Are you ready to buy?
The weekly closed yesterday with a pretty nasty bearish candle pattern. On a time frame that high it's a strong signal. It is LTC's 'real' first correction since the start of the run, where ltc did x5 from 20 to $100.
We ended our run on the 100$ mark, a highly psychological barrier for traders. The price range from $93 to $110 was full of previous horizontale s/r. We also had the 0.236 of retracement from the whole correction at $105. Overall the daily is looking pretty bearish so far.
Putting my Elliott wave hat on as you can see on the chart, it looks like we ended a 5 waves impulsive structure. We're therefore looking for the highest probability zone for end of the correction of a potential wave 2, which is around the 0.5 to 0.618 area. 62$ looks like a very good potential refill as we have confluence.
- 0.5 of retracement
- Previous resistance of a 2 week ascending triangle
- wave 4
- Oversold RSI
As we can see on Vpvr, the $60 to $100 range has always been neglected by trad
ers, the volume is extremely low. That's basically why we are drilling through this price range. The next signs of liquidity will be around 62$ as well.
Finally let's take a look in H1, I previously thought that we had some sort of falling wedge but it better looks like a descending channel that we almost broke down. We can see some sort of consolidation on the RSI but the buy volume is still extremely weak.
To conclude, if you're a bull there is very little reason to buy right now, but sit tight as $62 to $57 offers a very good r:r ratio to refill.
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