LTC indecisive but Bear's could attack soon
Let's look at LTC. for the last 11-12 days LTC has been in a horizontal consolidation period.
It seems the bears are either running out of steam or they are waiting to attack, and the bulls are just not certain it's time to jump in the ring.
If you look at the chart I've drawn it appears a further downward movement is in for the near future. We have formed a head and shoulders pattern that, if it plays out, should take us down to around the $85-$83 level.
We also have a descending triangle formed (in light blue) which is also a bear signal. Then you have the HUGE descending triangle based on the bounces of the low we've seen since 02/05 (in orange)
This market has the potential, according to the chart, to have a huge drop, though i don't think it's going to go that far.
What I believe we might see is for this H&S pattern to play out and take us to the $85 level, or we may just drop back down to the $107 bottom we keep bouncing off of and then the bulls will return to the market in full force.
When we have such long extension of horizontal movement it's really hard to call what's going to happen. It could really mean anything, so standing on the sidelines is what's safest at this point (and is also why we often see such horizontal movement (chicken/egg).
On the other hand, we could see the market defy the H&S pattern and descending triangle and return to a bull run. We've already seen the defiance of the reverse H&S pattern that formed between 02/14 and 3/4, which should have shot us up but instead brokedown in the opposite direction.
I know this TA doesn't really help you make any decisions, and that's not my point here. Because right now, the way this market is acting is extremely hard to analyse.
I've also taken note of a very large correction since the ATH and according to Elliot Wave theory, we are getting close to the end of the ABC correction point which should take us to a 3rd leg of the impulse wave, which is often the longest and take us to a new ATH. This could either happen within the next few days without further downtrend, or it could happen after the H&S pattern takes us down to its $85 potention, or.... it could happen on the $207 bottom bounce.
Time will tell.
As you can see, I'm not clear on anything that's going to happen, so I'm personally sitting on the sidelines holding fiat till I see a break in the pattern which will give me a signal of where the market is going.
This is not financial advice and I am not a financial advisor nor a professional.
Take this TA for what it is... just some guy reading patterns in the market and having a conversation about it.
Best of luck out there.
It seems the bears are either running out of steam or they are waiting to attack, and the bulls are just not certain it's time to jump in the ring.
If you look at the chart I've drawn it appears a further downward movement is in for the near future. We have formed a head and shoulders pattern that, if it plays out, should take us down to around the $85-$83 level.
We also have a descending triangle formed (in light blue) which is also a bear signal. Then you have the HUGE descending triangle based on the bounces of the low we've seen since 02/05 (in orange)
This market has the potential, according to the chart, to have a huge drop, though i don't think it's going to go that far.
What I believe we might see is for this H&S pattern to play out and take us to the $85 level, or we may just drop back down to the $107 bottom we keep bouncing off of and then the bulls will return to the market in full force.
When we have such long extension of horizontal movement it's really hard to call what's going to happen. It could really mean anything, so standing on the sidelines is what's safest at this point (and is also why we often see such horizontal movement (chicken/egg).
On the other hand, we could see the market defy the H&S pattern and descending triangle and return to a bull run. We've already seen the defiance of the reverse H&S pattern that formed between 02/14 and 3/4, which should have shot us up but instead brokedown in the opposite direction.
I know this TA doesn't really help you make any decisions, and that's not my point here. Because right now, the way this market is acting is extremely hard to analyse.
I've also taken note of a very large correction since the ATH and according to Elliot Wave theory, we are getting close to the end of the ABC correction point which should take us to a 3rd leg of the impulse wave, which is often the longest and take us to a new ATH. This could either happen within the next few days without further downtrend, or it could happen after the H&S pattern takes us down to its $85 potention, or.... it could happen on the $207 bottom bounce.
Time will tell.
As you can see, I'm not clear on anything that's going to happen, so I'm personally sitting on the sidelines holding fiat till I see a break in the pattern which will give me a signal of where the market is going.
This is not financial advice and I am not a financial advisor nor a professional.
Take this TA for what it is... just some guy reading patterns in the market and having a conversation about it.
Best of luck out there.
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