Hi friends! Welcome to this update analysis on Litecoin. Let's jump right in. looking at the four hour chart, you can see that I've changed the flag portion of the bull flag
. The way that I had it drawn yesterday, produced a breakout, but the breakout rolled over just above the Inv. H&S
Target. That rollover is not what you want to see on a breakout. Now, we have to assume that the flag has morphed into a different structure, which is now shown on the chart. The 20 EMA
(in blue) is rising into the flag, so it could be the support that ultimately causes a breakout. If LTC starts to break below the 20 EMA
, that would be a yellow caution flag. For educational purposes only, if it breaks below the bottom of the bull flag
, that would be an obvious short term sell signal. The MACD
is rolling over slightly, in conjunction with the price action. For now, keep a close eye on the action inside of the bull flag
, to determine where we go from here. On the upside, initial resistance should be found at the top of the uptrend channel
(in pink.) Keep in mind that the hard fork is supposed to occur tomorrow, on the 1,371,111th block, at approximately 20:56:44 (UTC). We may not see a move out of the flag, up or down, until then. According to the big bull flag
on the chart, we are likely to get a breakout to the upside. However, we should never place trades until we see evidence of a breakout.
This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, comment, like, and share on social media. Good luck trading everyone!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
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