These patterns are very peculiar things, in , and I think they emerge as a random expression in the chart. I believe that because there aren't many people who can identify them, because they are more obscure than the general formations that analysts know and watch for. Therefore, they aren't traded as precisely, because analysts and traders don't recognize them to trade them in the first place, and thus cause the projection to come to fruition. That doesn't detract from the notion that the expression won't continue further. In this case, we're looking for an extended breakdown, much like the one seen between 3/26 and 3/30, to take us down to potentially the 68 level. That would be a fall equal to the magnitude of the fall seen between 3/26 and 3/30, so it isn't like it's some huge impossibility for us to fall to 68 in a very short period of time. To put it into perspective, LTC just fell from 158 to 109 during the four aforementioned days — a loss of 31%. I realize that a fall to 68 is nearly -40% from current levels, but I do believe that the overall technical picture supports such a decline.
For now, let's watch for a breakdown of this small , as the 20 (in blue) begins to enter the flag body. If/when the flag breaks to the downside, support rests at the low of 106.52, from 2/6. Below there, things could really accelerate to the downside, with support around 84 and then the 70-68 area. Rallies to and above the 50 (in orange) continue to be selling opportunities in LTC.
I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic! revoir.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-Magic loves you-