LTC/USD - Trading Opportunities
Updated
What's up traders,
Here we have LTC/USD on the 12H chart.
LTC/USD has been trading within a consolidation range since a rally peaked and started corrected on 19th December. Price has recently been trading within a structure, between the horizontal support zone at 174.20 and a sidewards support turned resistance at 215 (At todays levels.)
Price has broken out of the side-wards support. When price was testing the support previously it was making lower highs. But on the last retest of support on January 2, it is having clear a higher high, which indicated bullish momentum, but the move failed and side-wards support line was broken.
I am expecting Litecoin to continue a break down. Before this, price could retest the previous side-wards support as resistance at 215 before the down move continues.
This trade could play out in 2 days, I have outlined these below:
-Price successfully breaks down in one down impulse, tests the horizontal support level at 172, and bounces to the upside target at 370. This is our preferred scenario as price has less work to do to hit the upside target if it bounces at the earliest opportunity.
-Price breaks down impulsively, missing the horizontal support at 172, traveling to the lower primary support zone at 89.30, before bouncing to the upside target of 370.
Bare in mind, that price will more likely hit the upside target if it hits the first horizontal support at 172, as if it goes to the secondary support zone, price has move work to do to reach the upside target.
If price retests the side-wards support turned resistance before continuing to the horizontal support zones, this will ignite an oversold state, which is our preferred scenario. The more bears get their pessimism out of their systems before hitting the horizontal support targets, the better.
I will updating this analysis if it receives more than 40 likes.
Here we have LTC/USD on the 12H chart.
LTC/USD has been trading within a consolidation range since a rally peaked and started corrected on 19th December. Price has recently been trading within a structure, between the horizontal support zone at 174.20 and a sidewards support turned resistance at 215 (At todays levels.)
Price has broken out of the side-wards support. When price was testing the support previously it was making lower highs. But on the last retest of support on January 2, it is having clear a higher high, which indicated bullish momentum, but the move failed and side-wards support line was broken.
I am expecting Litecoin to continue a break down. Before this, price could retest the previous side-wards support as resistance at 215 before the down move continues.
This trade could play out in 2 days, I have outlined these below:
-Price successfully breaks down in one down impulse, tests the horizontal support level at 172, and bounces to the upside target at 370. This is our preferred scenario as price has less work to do to hit the upside target if it bounces at the earliest opportunity.
-Price breaks down impulsively, missing the horizontal support at 172, traveling to the lower primary support zone at 89.30, before bouncing to the upside target of 370.
Bare in mind, that price will more likely hit the upside target if it hits the first horizontal support at 172, as if it goes to the secondary support zone, price has move work to do to reach the upside target.
If price retests the side-wards support turned resistance before continuing to the horizontal support zones, this will ignite an oversold state, which is our preferred scenario. The more bears get their pessimism out of their systems before hitting the horizontal support targets, the better.
I will updating this analysis if it receives more than 40 likes.
Note
Since posting above, price had a nice down move, and the picked up some bull momentum. When analyzing LTC/USD on the 4H chart, I discovered price had a impulse leg, and then a shallow corrective leg. This suggests to me we are in a short term 3 wave bull move.
I am expecting LTC/USD to continue the up move, and hit the 3 wave target at 274.60.
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