Bear flag forming on LTC
Updated
After the capitulation sell off on LTC and most other alts during the end of March LTC had a 12%+ bounce which lead to a formation of a bull flag. After the successful upwards breakout of the bullflag this caused an increase equivalent to the pole of the bullflag which then got rejected by the horizontal resistance level around 0.0182 sats. This has now created a bear flag and I will be looking to short the bounce from here or the breakdown from this formation, my personal target is the horizontal support level around 0.015 sats.
If you zoom out on the daily chart you can see LTC is forming a replica of its bastard formation of a triple top, this also paired with the bearish sentiment of the overall market is making the breakdown of this flag formation ever more possible.
If you zoom out on the daily chart you can see LTC is forming a replica of its bastard formation of a triple top, this also paired with the bearish sentiment of the overall market is making the breakdown of this flag formation ever more possible.
Comment
If you look closely, LTC's price has been slowly increasing over the last 2 days but its volume is declining. This is a bearish divergence which indicates that buying pressure is slowing. Remember, price increases require volume, price declines necessarily do not.Trade active
LTC is currently breaking down from its flag and my target of 0.0152 sats stands. This target is measured by taking the distance of the pole and duplicating its vertical distance on the breakout point of the flag
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