LTCUSD 1D - Expecting a correction and plan accordingly
Hi everyone,
Litecoin today is performing very bullish. I am looking at the big picture though, to have a plan according to one of the possibilities I consider likely to happen.
As you can see in the chart, Litecoin has gone from its bottom like a rocket. The question here is if there is more fuel on the tank or not. The price rebounded nicely on the 50MA in white, was rejected in what I consider a big resistance area, between 108 and 118 dollars, although could make it shorter to simplify, between 110 and 115 dollars. The wicks on the top of the candles are showing the resistance. There has not been a significant retracement yet and the chances for it as it goes higher increase. Therefore, I think this cluster of resistance will act as it should and profits will be taken. For those who like Elliot Waves, the completion of a 5th wave seems nearly completed. In addition, the 200MA in yellow is currently below the 0.618 retracement level (if we take the 108 dollars as a provisional top), which also drives me to think that price may test the 200MA and rebound from it, somewhere within the highlighted Buy Area, between 75 and 65 dollars.
Indicators are starting to show bearish divergence, both MACD and RSI.
*Not financial advise. Just sharing my ideas :)
Feel free to give your feedback/opinion. Thanks for reading!
Litecoin today is performing very bullish. I am looking at the big picture though, to have a plan according to one of the possibilities I consider likely to happen.
As you can see in the chart, Litecoin has gone from its bottom like a rocket. The question here is if there is more fuel on the tank or not. The price rebounded nicely on the 50MA in white, was rejected in what I consider a big resistance area, between 108 and 118 dollars, although could make it shorter to simplify, between 110 and 115 dollars. The wicks on the top of the candles are showing the resistance. There has not been a significant retracement yet and the chances for it as it goes higher increase. Therefore, I think this cluster of resistance will act as it should and profits will be taken. For those who like Elliot Waves, the completion of a 5th wave seems nearly completed. In addition, the 200MA in yellow is currently below the 0.618 retracement level (if we take the 108 dollars as a provisional top), which also drives me to think that price may test the 200MA and rebound from it, somewhere within the highlighted Buy Area, between 75 and 65 dollars.
Indicators are starting to show bearish divergence, both MACD and RSI.
*Not financial advise. Just sharing my ideas :)
Feel free to give your feedback/opinion. Thanks for reading!
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