Ahoy Traders and Mateys!
Litecoin has been moving against MA50 without being able to break through and that’s why MA50 should be considered as resistance. The price is located at the moment in the intersection of important levels such as linear resistance levels (MA50, downtrend line) and support zone ($81.7 – $79.5) which is located near the 0.618 fib level.
If you didn’t know, most of the reversals happen from the 0.618 fib level and, when it is combined with the first support level in between $81 – $79 levels, it becomes a very attractive area to look for confirmed reversal. This requires a pullback but if it happens, this would be the first area to look for.
Volume is almost diminished and if the price starts breaking out through the MA50 level + downtrend line then volume should follow up with the breakout.
There are two strategies that can be utilized here (with stop-losses, don’t forget!):
You can buy either the confirmed breakout or you can wait for a pullback. There are several aspects to take in note when the price starts moving either way and taking trade in this area can offer more risks than opportunities.
Taking a trade at these levels is actually offering more risks than opportunities and it would make trading pretty random as there isn’t any proper setup, yet. It’s good to keep in mind that randomness is something that ruins good trading habits in the longer run and increases your risks to take trades in the middle of nowhere. That’s why I have set few conditions under which I’m willing to take a trade. When the support area doesn’t hold and is looking to move lower, then I’m waiting for another trading opportunity to happen.
On the longer term perspective the price has to take down the resistance zone in between the $89 – $92 levels to indicate any bullishness.
The price has been ranging in between support/resistance levels and they are actually offering really good trading opportunities if you manage to catch a bottom with confirmed reversal signals for example.
Please, if any question comes to your mind, don’t hesitate to ask! I try my best to respond ASAP!
If you need help with trading, finding information, or courses let me know and I’d be more than happy to help you!
Things to Remember:
- Stop-loss orders are strongly recommended.
- Beware of buying tops or FOMOS, you might end up losing or waiting long periods of time before getting anything back.
- Do your homework before investing.
Please be aware this is not financial advice. You are responsible for your trading and investing decisions. It is highly recommended to do your own research before investing in anything.
My list of trading tutorials:
Twitter – @YarrPiratez
Telegram – http://t.me/YarrPiratez Crypto Signals & News
Telegram – http://t.me/YarrChat Captain’s Crypto Cabin
Trade altcoins – https://www.binance.com/?ref=10803871
Tradingview – https://www.tradingview.com/u/yarr/
Also published on Medium.