Analysis provided by Ashton Fraser, learn more about his trading strategies with the forex reversal indicator.
Litecoin had been rising steadily since the 8th of March, reaching a crescendo a couple of days ago. It’s given back all its recent gains, something which was expected, given the technicals we’d analysed over the past couple of days.
Let’s take a closer look at the LTC/USD chart below:
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I’ve performed the Fibonacci study from the low of the 8th at 15.14, as this is where the initial trend actually began, albeit accelerating quickly from the 18th, until this month’s high at 21.
We can see how the candle to last tested the 100% level, i.e. 15.14, telling us this could be shaping up to be an important support zone (circled in blue).
As for what price is doing right now, it seems messy, since even though we have the Stochastics in underbought territory and heading upwards, the Accelerator Oscillator and Awesome Oscillator have both turned red. In addition, the previous two candles’ lower wicks are rather long, which adds more indecision.
Price shall probably fluctuate between today’s low and the 78.6% Fib level for the rest of the afternoon.
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