LTCBTC - Possible Cup and Handle reversal
Updated
A possible cup and handle reversal pattern may be forming on the Litecoin-Bitcoin pair (LTCBTC) on the 4 hr chart. With the cup component already completed, the base of the cup reversing off the demand zone (blue shading), the handle component has shown a steady and consistent downtrend channel which has recently found support along an uptrend zone of support (blue trend line). CCI oscillator is already suggesting bullish divergence which attracted an ~1% bounce to the positive in price action. Another retest of this uptrend support trend line with confirmation of reversal (higher lows on the CCI oscillator) should provide a good entry given a subsequent return in price to the top of the cup is possible for an ~5% gain.
If the reversal pattern plays out completely, and the price exceeds the top of the cup, there's the possibility of the price action continuing the uptrend to reach the supply zone (red shading) for an approximate 9% gain.
If the reversal pattern plays out completely, and the price exceeds the top of the cup, there's the possibility of the price action continuing the uptrend to reach the supply zone (red shading) for an approximate 9% gain.
Note
Cup and handkle reversal pattern completed and reached the supply zone (red shading) for a possible maximum 9% trade. Reaching the top of the cup and handle would have netted around 5% from the time of initial idea posting.
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