Magic Put's Litecoin On Wax (LTC)

My friends, my peeps, my family of crypto lovers, welcome to this often imitated, but never duplicated, update analysis on LITECOIN! Let's get it! Since yesterdays post, we can see that LTC rapidly fell to the 200 EMA (in purple,) pierced it severely, and then rallied hard to the upside. The pierce of the 200 EMA is noteworthy, because it has effectively weakened the 200 as a support level. Should LTC return to it again in the near future, it probably won't so supportive. You can see that we're now retesting the 50 EMA (in orange) and the bottom of the pink uptrend channel. Looking at the MACD, you can see that LTC is sooooooo close to making a bullish crossover, but it hasn't actually happened yet. Honestly, I wouldn't be surprised if we see a bit of consolidation right here. In comparison, the reversal that was formed in Bitcoin is very consistent with the formation of the proposed inverse head and shoulders pattern on it's chart. You can see that the reversal here is also consistent with the proposed inverse head and shoulders pattern. That is, a continuation move to the downside, with a subsequent reversal to the upside. Now that the reversal has taken place, we need to watch, to see where we go from here. For educational purposes, if you want to be aggressive on the long side, you could buy LTC on a bullish break into the pink uptrend channel, with a stop order just below the channel. That would put you in a position to catch some nice upside, while simultaneously mitigating your downside risk. For now though, let's wait to see if we even get up there. It's important to realize that it's risky to be long right now. We've just broken down from the uptrend channel, and we could potentially see a continuation lower. In particular, if we see LTC confirm below the maroon support level, at about 168.80, that would be a very negative sign, which could indicate further downside. So you can see how delicate of a position LTC is in. If a move like that developed, I would abandon the inverse head and shoulders pattern, and embrace the bearish side of the market, until LTC gave me real evidence of a reversal.

Now, there's something powerful worth pointing out here. If you look at the neckline of the inverse head and shoulders pattern, you can see that it has an aggressive upward slope, These types of necklines are generated when the head forms a higher second peak. This is more bullish than an inverse head and shoulders with a flat or downward sloping neckline. So, if LTC completes the formation of this pattern, the breakout could be very strong. But before we get ahead of ourselves, let's see if LTC can even get back up into the pink channel. I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic. Au revoir.

This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, comment, like, and share on social media. Good luck trading everyone!

***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***

-MPC loves you-

-JD-