Price action isn't looking too strong in LTC at the moment. On the four hour chart, it has failed to break above the 50 EMA (in orange,) five times in a row. Also, it appears to be forming a bear flag. If the bulls cant get this thing back above the 50 EMA, and above the bear flag, LTC is going to drop like a rock. Below the bear flag, the first downside target would be the 200 EMA ( in purple.) A break below that is likely to send LTC screaming down to $200, which is a critical support level for this market. A break above the overhead resistance, will confirm the higher low. From that point, we could see LTC post another higher high. I will keep you posted, as the chart develops.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-JD-
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-JD-
Commentaire:
In the comment section, I've noticed some speculation about the possibility of LTC reaching $200. Just to illustrate, technically, how easy that would be, I would like to inform you on the most common way that traders find price targets for flag formations. If a trader notices a flag, they typically take the flagpole, copy it, and put it at the breakout point of the flag, in order to estimate a price target. I did that when I was analyzing this chart, and given the size of the flagpole, if it does break down, the price target would be about $185. I didn't want to include that in my analysis, because I thought it would be viewed as a drastic target. However, the technical indications project a likely drop to $200, should the bear flag break to the downside.