Short

When To Short Litecoin?

Updated

The bear market on the weekly chart has got shorters thirsty for a target to enter , especially with the daily bearish divergence. Here we consider some good higher levels to short at as well as some levels which when broken could trigger the end of the daily uptrend.

Note

When the yellow channel was broken, we saw a swift move down to the next support I mentioned at 55.5.
Right now price action is struggling to move away from this level but it has not broken yet. 55% probability that it breaks since it has been tested so many times and we are losing buyers every time we touch this level again.

Note

As predicted we did break the 55.5 level and proceeded to move down another several % points. However, the Daily did not close below this level. We did not touch the support line of the ascending wedge, nor the 21 D EMA. While this is bullish in general, it also means LTC may be in need of a breather sooner rather than later.

Note

We are now at that 63 level I spoke of which could offer a great R:R ratio. However, daily RSI has now created a triple top at the 70 level instead of creating new lower lows which is less encouraging for the bears. I'm waiting before getting into a bear trade and keeping an eye on the RSI and the MACD histogram which shouldn't get above the 0.79 to 0.82 region.

Note

Also keeping an eye on the bullish volume which should not cross the 20 MA (yellow line) and the MACD fast line which shouldn't register higher highs.

FrankFerriss

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