LTCUSD Perspective And Levels: Range Break Out.
LTCUSD Update: This market breaks out above the 57 range high back into the mid 60s and is just below the 69 to 80 resistance zone. It is coming from a higher low at the 50 level (I wrote about this previously) which is a structure that implies further strength.
I wrote about the failed low at the 50 level over a week ago and in light of the BTC rally this market has slowly worked it's way back to the top of the range and broke the 57 resistance which should not be too surprising since it came from a double bottom structure. The question is what to do from here?
I like this market both for swing trade potential and as a long term investment. A retest of the high 50s (old resistance) should provide a new support upon any retest. This would be a good place for a swing trade long since risk can be defined by the 50 support level and a reasonable target in the low to mid 70's offers sound reward/risk in my opinion (around 2:1 at least). The old 57 resistance is now the .382 support of the new bullish swing which makes this level even more relevant for evaluating bullish reversal patterns on smaller time frames.
The reward/risk from the high 50s is even more attractive in light of the 1.618 extension which happens to be the 84 level (this is based on the measurement taken from the recent bullish structure). Of course, a supportive BTC market will have to continue in order for this market continue working its way higher. IF BTC is in the middle of a serious retracement, and this market is testing supports, then I would not be so quick to buy. I consider a serious retrace at least 600 or more points on BTC.
In terms of long term investment, I do believe in the merit of the technology and I don't think it is a bad idea to hold some as a core position with no target. If this market happens to offer the entry criteria that I am looking for, I plan to hold some as an investment as well.
In summary, this market has been generally stable compared to BTC, and much more affordable than ETH. Also Fundamentally, this market is one that I believe in for the long term which is why I do not mind holding some as a core position IF my long criteria is met in the high 50s. If I see BTC selling off, I will avoid buying anything until it finds it's next level of stability and then reevaluate from there. So remember, IF this market triggers a long, there will be 2 strategies in play. The swing trade with a target in the mid 70s and a core position without any exit prices.
Comments and questions welcome.
I wrote about the failed low at the 50 level over a week ago and in light of the BTC rally this market has slowly worked it's way back to the top of the range and broke the 57 resistance which should not be too surprising since it came from a double bottom structure. The question is what to do from here?
I like this market both for swing trade potential and as a long term investment. A retest of the high 50s (old resistance) should provide a new support upon any retest. This would be a good place for a swing trade long since risk can be defined by the 50 support level and a reasonable target in the low to mid 70's offers sound reward/risk in my opinion (around 2:1 at least). The old 57 resistance is now the .382 support of the new bullish swing which makes this level even more relevant for evaluating bullish reversal patterns on smaller time frames.
The reward/risk from the high 50s is even more attractive in light of the 1.618 extension which happens to be the 84 level (this is based on the measurement taken from the recent bullish structure). Of course, a supportive BTC market will have to continue in order for this market continue working its way higher. IF BTC is in the middle of a serious retracement, and this market is testing supports, then I would not be so quick to buy. I consider a serious retrace at least 600 or more points on BTC.
In terms of long term investment, I do believe in the merit of the technology and I don't think it is a bad idea to hold some as a core position with no target. If this market happens to offer the entry criteria that I am looking for, I plan to hold some as an investment as well.
In summary, this market has been generally stable compared to BTC, and much more affordable than ETH. Also Fundamentally, this market is one that I believe in for the long term which is why I do not mind holding some as a core position IF my long criteria is met in the high 50s. If I see BTC selling off, I will avoid buying anything until it finds it's next level of stability and then reevaluate from there. So remember, IF this market triggers a long, there will be 2 strategies in play. The swing trade with a target in the mid 70s and a core position without any exit prices.
Comments and questions welcome.
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