Analysis provided by Ashton Fraser, learn more about his Forex Reversals trading strategies.
Litecoin played out some bulls this morning, adhering to a number of technicals.
Let’s take a closer look at the intra-day M30 chart on LTC/USD (click to expand):
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I’ve zoomed in here and done a shorter term Fibonacci study than usual, as when such a sharp rise occurs in a short period, closing in on the lower timeframe charts helps in understanding the dynamics of market action.
A series of technicals followed each other, resulting in an upsurge in price.
The earliest sign of this was at the close of the 6am GMT M30 candle this morning, when we noticed that the Accelerator Oscillator had turned green, circled in blue. At the close of the 7.30am GMT M30 candle, the Awesome Oscillator also turned bullish. And finally, at the close of the next candle, the Stochastics had crossed over, whilst being underbought. Indeed, concerning the AC we just mentioned, for the previous four candles it was uninterrupted, alluring to an imminent hike if corroboration entailed.
As soon as these technicals converged, price shot up on the next candle, hitting 18.55, before coming down to firstly, the 38.2% Fib retracement level, ellipsed in red.
Price hovered at the 38.2% Fib level for the next couple of hours, before rising again. However, it’s been unable to break today’s high, as you can see an immediate bounce of 18.55 around an hour ago. I’d expect price to re-test and possibly break this area soon.