LiteCoin (LTC/USD) Analysis December 14, 2017
The past three weeks has been definitive for Litecoin.
Perhaps it was coming as hinted by higher time frame charts. As we can see, LTC prices exploded last week. As it is, we have seen a 3X increase in LTC valuation in record 3 weeks.
From all I know, this has been long coming. This view was cemented after prices closed above the main resistance line at $100 2 weeks ago.
Before that, there was a strong stochastic buy signal with almost parallel %k and %d that lead to bullish candlesticks banding along the upper BB as the pump begun.
The result? Multi-level break and close above resistance levels as projected from Fibonacci extension level tool drawn from November 2017 lows and August 2017 highs.
In this time frame, we won’t be depending on the middle BB to act as our immediate support because price is really over-extended. You can verify that by measuring the relative distance between the middle band and the current live price along the upper BB.
Because of that, the second Fibonacci extension level at $255 will be our immediate support while our resistance will be at $350 going forward.
The daily chart is bare but because we already know our immediate support and resistance lines-as mentioned in the weekly chart, we should expect some reactions at those levels.
Without going far, LTC prices are over-extended to the upside with a whole candlestick forming above the upper BB. Because of this, we expect some correction.
Already there is a stochastic sell signal with bear momentum gearing up. For equilibrium purposes, LTC bears may end up driving prices towards the middle BB and the lower limit for that correction is theoretically at $255.
Entry in the 4HR chart will be based of Fibonacci retracement.
Pasting this tool between last week’s high lows we notice that our $255 support is at the 50% retracement level and the upper limit represented by the 38.2% level is marked at around $300.
There is a stochastic sell signal in place and should there be a dip then we expect to buy within this $45 buy zone as marked in the chart.
It would even be ideal if price bounce off the 20 period MA before bulls resume.
