LITECOIN UPDATE

LTC is nearing the end of the correction phase, which was first a zigzag followed by a triangle correction. Most likely it is headed up from here, with a medium term (three month) price target of $344. As you probably are well aware, LTC wont get there in a straight line, so I will focus this TA on the price forecast for approximately the next week and next month.

LTC is hitting a long support line, the base of the symmetrical triangle, established in February. Recognizing this is step 1, you can place a tight stop below the triangle pattern , as if this fails, the price will likely plunge. However, based on the TA here, this is an unlikely scenario.

What I anticipate, is LTC will bounce off support and test the upper boundary of the symmetrical triangle, and coincidentally the 50 SMA (on a daily time frame) and 0.382 Fibonacci extension within the next week or two at most. PT for this move is $155 From there I expect a pullback before a confirmed breakout occurs. I always look for multiple indicators for a resistance/support point, as the more you can string together, the more likely it will hold true. The next breakout setup, out of the symmetrical triangle, will likely run into resistance at the tip of the triangle formation and I anticipate a pullback. I would have made a price target to the 0.618, a very significant Fibonacci level, but this would come very close to violating the Elliot Wave rule, that wave 3 is never the shortest, so I raised this price target accordingly, but it is the least certain of the three impulse wave price targets for me.

The fifth wave of the breakout has a price target equal to the left boundary of the symmetrical triangle, https://www.investopedia.com/terms/s/symmetricaltriangle.asp (blue boxes, which I cloned and placed), around $330 and this coincides with the 1.618 Fibonacci extension very closely and will likely offer a more significant resistance, but the price usually exceeds the Fibonacci level before a pullback occurs, which means LTC could hit into the $360 range.

To get my time frame, I used a Fibonacci timescale from the last top to the bottom in February.

After this completes, it will be wave one of a larger degree series of 5 waves, which is very bullish for LTC. Bottom line, is this is the time to accumulate before the next great bull run, and having a few price targets in mind allows the active or swing trader to add to their stack along the way.