Wow, the bulls of Litecoin have really stamped their authority today, after the struggle to establish a clear direction for this week.
In my last LTC/USD technical analysis, I posted the following chart:
I explained that, after the downtrend, I felt,
“We may see some retracement here, since there is a corroboration for our oversold Stochastics, in that both the AC and the AO have turned green.”
Although,
“there may be some ranging for the next few hours.”
And the market did precisely that, eventually retracing to the 50% line, as can be seen below, circled in red (click to expand):
In addition, the 50% is a psychological round number of 11, thus providing further resistance.
Right now, price has just dropped back down to the 38.2% Fibonacci retracement line, and if you look at the Stochastic Oscillator, it just about to turn back down from an overbought position. I strongly suspect the Accelerator Oscillator will turn red by tomorrow as well, by which time we may well see break below 38.2%.
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