If you are keen enough, then you might have notice that LTC prices have been stagnant over the past 3 weeks or so. Fact is, prices were-and are-still moving within a tight $80 range in the weekly chart which in my opinion is small and well below the average weekly range.
We have now emphasized enough times that prices are generally bullish and any correction towards the middle BB-currently outpaced by rapid price action-or key Fibonacci extension levels are perfect buying opportunities.
There have been attempts especially after that close above the upper BB on Christmas Eve and the consequent candlestick that confirmed that bear move. As always, don’t fade the main trend even if they look perfect. Look at what happened even after that temporary Charlie Lee initiated sells? Still, December 31 lows remain as support while LTC prices continue oscillating along the 2nd Fibonacci extension level.
Judging from the set-up, $255 is a very strong support-or it was especially if LTC bears fail to push prices below $230 and $200 this week.
In the daily chart, the script is almost the same. The long term support-now resistance marked by the middle BB remains stable.
So far, LTC prices are still trending below it. If it remains this way and bear candlesticks continue to print, then our main support will be shifted to last week’s lows of $210. However, hints of higher highs in lower time frames that leads to close above $255 are potential buy opportunities and that’s w are watching out for in the 4HR chart.
From the daily chart, sellers are still in charge and with every bear candlestick, chances of a close above $255 look slim. As far as I’m concern, at current prices, bears have recovered 80% of what they lost last week and are now trending at the 78.6% Fibonacci retracement level as visible from the consolidation above. With this in mind, our first support at $230 is being tested and any close below $210 means we cancel our long projection and look for shorts next week.