Bounce Hunting these lows- LTC
Updated
We hit our bottom $115 line for a bounce and it's testing this area again. When litepay was suddenly canceled, the sentiment for litecoin went from bad to worse. I won't go into to much of the fundamentals of it, but if you are trading litecoin, it pays to be even more cautious while trading it. BTC is really the driver and if we get a retest of these lows in BTC, we could see litecoin dip to the $100 area.
Why we should (this is the key word, nothing is guaranteed) have a bounce.
1. Look at RSI historically and match it up with these previous low points. It's been a good indicator of getting a solid bounce.
2. MACD is waiting to cross over for a move to the upside. This would be a confirming upside indicator
3. This area above $100 is a MAJOR pshycological support level.
I would look to this area for support. It is possible we will go sub $100 before we get a bounce. Look to BTC and how it fares with this 6k low to determine where LTC will bounce. It looks like they are going to coincide very well, with LTC hitting just above this $100 area right around when BTC hits this 6k low. It could bounce sooner. You can either wait for confirmation or start laddering some buys in!
Happy Trading. Don't stree, pick your points, and don't use leverage!
-Sherem
Why we should (this is the key word, nothing is guaranteed) have a bounce.
1. Look at RSI historically and match it up with these previous low points. It's been a good indicator of getting a solid bounce.
2. MACD is waiting to cross over for a move to the upside. This would be a confirming upside indicator
3. This area above $100 is a MAJOR pshycological support level.
I would look to this area for support. It is possible we will go sub $100 before we get a bounce. Look to BTC and how it fares with this 6k low to determine where LTC will bounce. It looks like they are going to coincide very well, with LTC hitting just above this $100 area right around when BTC hits this 6k low. It could bounce sooner. You can either wait for confirmation or start laddering some buys in!
Happy Trading. Don't stree, pick your points, and don't use leverage!
-Sherem
Note
We have gotten another bounce and knocking on this 125 temp high. Kinda forming an ascending triangle, look for a move to the upside to 138 if this breaks - Note
Anywhere between now and the 100 area is possible for a bounce, we are in oversold territory. Since it is a holiday weekend, I would imagine a large bounce wouldn't happen until later when the Asian trading session starts, but we will see. If you are trading with stops, the proper stop is under $100. If you are trading martingale style, you need buys laddered down to $75
Trade closed: target reached
Great trade. Hitting this $138 level very nicely. I am going to be on the sidelines for LTC while I focus on ETH and BTC and these moves. I will post when I am looking to go back into LTC, but for right now a good buy would be at $120. With BTC and ETH pushing higher and more room to go in both, LTC could go all the way to $150. You can take half out now, half later. Lots of way to play this, don't let profits get away from you at this point.
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