Litecoin, July 27, A Trader’s View
The big picture looks like LTC has a solid, multi-year base that it is launching from. The .01650000 level looks to be key on the monthly time frame. It will be interesting to see if it closes July above or below. The .00970000 level is important first support on catastrophe trading that also coincides with the 61.8% Fibonacci retrace of the entire move from early 2017 lows to recent highs. The big question is: do we see a correction now, or after another rally first?
The weekly chart reveals another very important level, this time intermediate term, at .01445930 which also coincides with the 61.8% Fibonacci pullback on the last swing higher. Price is stair stepping higher in ascending triangle fashion on good volume and with healthy technicals, currently finding support at the 13 week moving average. Will .02200000 be challenged again in the near future? The weekly chart suggests that the possibilities are good.
The daily chart suggests that the possibilities are good too. Ascending trendlines/channeling combined with similarly sloped 55 and 110 day moving averages highlight an upward trend. The MACD suggests that the second half of that upward trend has actually been corrective in nature. During that time, volume has been decreasing, as would be expected in a corrective phase, with volume spikes occurring on bullish surprises, and not the reverse. Once again, like we see on the monthly, we have a rectangle highlighting the trading range – this is a trading range within the larger monthly trading range, in its upper right. Again, the million dollar question: will we break out of this range, and the larger range at the same time, or not?
Okay, so that’s the skinny on LTC’s technicals as I see them. We’ll have to keep monitoring the situation. A breakout would be great. Another rejection at .02200000 might be reason to lighten up short term. We’ll have to see what develops from here...
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Bitcoin is all over the place