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📈 Price Predictions
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LTC Technical Analysis: Bulls to Thrive in Green Candles

  • Stavros Georgiadis
    📈 Price Predictions

    The 7th largest cryptocurrency in the world is thriving in the green zone


LTC Technical Analysis: Bulls to Thrive in Green Candles

Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of U.Today. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

A breakout may be approaching:

·    1-year high: $365.524

·    1-year low: $49.22

Current price as of Nov. 7, 2018, is $55.17.

Current price

Bollinger bands on the yearly chart are in a narrow range: a lower band at $49.17, a higher band at $55.78. Usually, this tight range and consolidation anticipate a breakout. So what direction the breakout will take?

The strength of the trend measured by the Average Directional Movement indicator is very weak, currently at 15, with a level below 25 indicating a weak trend. Still, the dominant trend is +DI at 26.60 over -DI at 20.24 suggesting that there is a slight tendency towards an upward breakout. The recent price is below the daily 50-period exponential moving average at $55.41 but above the daily 20-period exponential moving average at $53.01.

A close above the 50-period daily exponential moving average is a good sign that the recent downtrend may be bottoming.

The MACD indicator is still negative, although flat, pointing to a directionless movement. Stochastic Indicator (14,3,3) is approaching overbought levels near 80.0 level; Williams %R (14) indicator is at overbought levels, currently at the -15.38 level; and as we mentioned before, the momentum indicator is flat since the trend is very weak.

Daily Pivot Points

Name

S3

S2

S1

Pivot Points

R1

R2

R3

Classic

50.334

51.457         

52.454

53.577

54.574

55.697

56.694

There is support at $48.29 and $51.54 and resistance at $66, $74.80 and $94.30 and then at $108.30.

It is better to be in a wait-and-see mode as bottoming is yet to be confirmed. An upward breakout cannot yet be supported, and the recent consolidation of the high-low price of about $65–$48 may last more as it already counts almost three months as of late summer 2018. For the trend to change from downward to upward, the price should close about the previous highs of $69 and $93.

Cover image via u.today
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About the author

Stavros Georgiadis - CFA Charterholder, Economist, Forex market trader, US stock market financial analyst.

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