Analysis provided by Ashton Fraser, learn more about his trading strategies at Forex Reversal.
Litecoin traversed a southern road this morning, but technicals now point to a short bull rally.
Let’s take a closer look at the intra-day chart below for LTC/USD on M30 (click to expand).
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Price reached a high over the weekend at 16.16, before dropping all the way till 14.37 this morning. Hence, this is where I’ve done today’s Fibonacci study. There were signs of a reversal this morning, when around 5am GMT, we saw how the Stochastics began to cross over, heading upwards whilst being underbought, and both the Accelerator and Awesome Oscillators had turned green.
However, there is also a pretty strong trendline that provides some decent support. See chart below click to expand).
Look at how many times price tested support. Ok, so the trendline was heading downwards, meaning any support would probably only provide temporary relief to the southern trend, but combined with the additional technicals mentioned above, then I’d expect price to rise higher than the 23.6% Fib retracement level it’s currently at.
In fact, the psychological whole number of 15.0 isn’t too far away, so expect some fluctuation between 23.6% and 15.0 over the next few hours.