LiteCoin (LTC/USD) Analysis January 2, 2018

Litecoin analysis

LiteCoin (LTC/USD) Analysis January 2, 2018

Now what about that 200X price increase within 12 months? Will this trend continue? Well, I say the charts will tell us as no one knows the future. In my own view, I will reiterate that LTC prices are grossly over-valued. Ok, strike out that “gross” and maybe say sellers might have a party in the short term.

 As per my recommendation, bears are in charge and driving prices lower as we can see in the chart. This wasn’t hard to see why. After peaking at $400, a whole LTC weekly candlestick closed above the upper BB as a bear. This bear candlestick was confirmed last week as LTC shed $81 with lows testing $200. For bears, this was important because the main support line at $255 was obliterated as prices sunk.

Now, here’s the deal and this should be important for sellers. First, note that our main resistance line now stands at $255-that is the second Fibonacci extension line drawn from Q1 and Q3 High-lows. Secondly, because of these diverging %k and %d signals of the stochastics, we shall be taking stochastics sell signals only in the 4HR chart.

That’s a no brainer, right? Of course no one ones to get burnt by fading the main trend. It is always safe to trade with the trend especially now that a stochastic sell signal has been formed and its turning away deep from the overbought territory. I will also insist that any retest of $255 is an awesome sell opportunity in the lower time frame.

In our entry chart, we notice two things. First, there is a bull divergence pattern relative to LTC prices and a stochastic buy signal in place.

The combination of these two means sellers might have to wait for a stochastic sell signal to form especially if there is a close above the middle BB. Potential sell levels are at $255 and $280.

Any strong close above that and sellers might have to stay away from this trade until a clear sell signal forms. Otherwise, sellers should aim at $150.


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