Analysis provided by Ashton Fraser, learn more about his trading strategies with the forex reversal indicator.
Litecoin rises above 16.4, an important resistance level, but will the trend continue?
Before we analyse at today’s chart, let’s remind ourselves of the reason for the recent Litecoin hike by looking at yesterday’s chart (click to expand):
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I mentioned in yesterday’s analysis, “take a look at the latest technicals, (marked with a white ellipse). The Accelerator Oscillator has been green for a few candles, with the Awesome Oscillator having followed suit within the past hour. Also, we have the Stochastics oversold/underbought, and are now crossing upwards. Hence, I am expecting price to rise again, for the short term at least, possibly re-testing today’s high at 16.4.”
Now, not only did price re-test 16.4, it’s since surpassed that level. But we need to zoom out and take a look at the current LTC/USD chart on the four hour timeframe, to see what could happen during the course of the week (click below to expand):
Look at how consistent the Awesome Oscillator has been for the past dozen or so candles, this provides us with confidence in the continued move, especially given the fact that the Accelerator Oscillator has just recently turned green. And whilst the Stochastics may be in overbought territory, this may indicate a retrace soon, yet I expect price to continue in it’s current northern direction. It often happens where price can exceed a certain level, only to rapidly shoot down before candle closure, so we end up with just the wick above/below the S/R line, which isn’t really a true break, so as long as price closes above 23.6%, I actually expect price to hit 17.00 before the end of the week, where we’ll probably see some resistance due to it being a psychological whole number.
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