LTC/USD Bull Flag Breakout - Will it hold?
Updated
As we've continued in the downtrend channel, Litecoin has been like clockwork. Dips and bounces along the way. I took the liberty of marking time stamps during US business hours to see if any trends within trends would show up. Black lines represent 8 am EST and Orange lines represent 5 PM PST. Interestingly, during most weeks and weekends we see a dip and a bounce...and most of us are waiting for the downtrend to end.
Over the past couple of weeks we've been trading in the lower half of the downtrend channel. Over the past two days, what appeared to be a bull flag formed with pressure on the upside. During lunch Eastern time, we broke out of the bull flag AND passed the .618 Fib line from December ATH at 165 with the retrace hitting at 169 back to the 165=166 range.
If we can hold the fib line when "Wall Street" gets back from lunch, we may get to play in the upper half of the downtrend channel, and watch to see if we can finally break out of the downtrend channel in the 179 range. Notice the dark blue line at 177.4. That was the heavy resistance point for Elliot wave #1 during the Dec ATH run. IF, and it's a BIG IF...we can get by these levels....the bull run may finally be back.
If we breakdown, the weekly dip will bring us down to the mid point 156+, or back down to the bottom of the downtrend channel in the high 130's. Keep your fingers crossed, be careful FOMO'ing here, and hope for the best. Keep a decent sized of fiat in case of the midweek dip, and don't set your stop losses too close to the price or you could be taken out too early.
This is not investment advice, this is only an opinion. I've been fortunate over the past couple of weeks, and today's bull run has been a thing of beauty. Just hoping it will continue upward (I've got some high priced coins waiting on the bulls).
Over the past couple of weeks we've been trading in the lower half of the downtrend channel. Over the past two days, what appeared to be a bull flag formed with pressure on the upside. During lunch Eastern time, we broke out of the bull flag AND passed the .618 Fib line from December ATH at 165 with the retrace hitting at 169 back to the 165=166 range.
If we can hold the fib line when "Wall Street" gets back from lunch, we may get to play in the upper half of the downtrend channel, and watch to see if we can finally break out of the downtrend channel in the 179 range. Notice the dark blue line at 177.4. That was the heavy resistance point for Elliot wave #1 during the Dec ATH run. IF, and it's a BIG IF...we can get by these levels....the bull run may finally be back.
If we breakdown, the weekly dip will bring us down to the mid point 156+, or back down to the bottom of the downtrend channel in the high 130's. Keep your fingers crossed, be careful FOMO'ing here, and hope for the best. Keep a decent sized of fiat in case of the midweek dip, and don't set your stop losses too close to the price or you could be taken out too early.
This is not investment advice, this is only an opinion. I've been fortunate over the past couple of weeks, and today's bull run has been a thing of beauty. Just hoping it will continue upward (I've got some high priced coins waiting on the bulls).
Note
Edit. Don't be surprised if trader take profits this afternoon. Watch closely for selloffs in the last 15 minutes of each time zone end of business, including 3;30-4 EST (Wall St), and there's almost always movement from 9"30-10 PM EST. Good luck to all.
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