Ever since the highs that Litecoin experienced at 14.23, exactly two weeks ago, price has been falling down consistently, barely offering glimmers of hope to speculators and investors. The weekend was a similar story, with price deliberating for some time, before dropping once again.
Let’s take a closer look at the latest LTC/USD H4 chart below (click to expand):
I’ve performed the Fibonacci study from the last major swing low at 9.5, until the high mentioned above, at 14.2.
Notice the ranging that occurred on Saturday, marked in a white ellipse. This was primarily due to the 78.6% Fibonacci retracement at 10.5. It provided some support, but ultimately the bears were too strong. This, despite the fact that the Stochastics are in an oversold position – which in a strong trend can prove limp, especially if relied upon alone.
What we need to do is identify other technicals which tell us why a break was possible – in this case we can see how the Accelerator Oscillator and Awesome Oscillator turned red, and when they coincide together like this, especially given the fact that the Parabolic Stop and Reverse indicator (PSAR) had dots above the candles for a number of days (since midweek).
Eventually we saw price almost test the low of our Fib line (i.e. 100% line at 9.5), and 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. The problem is the middle Bollinger line is still in a very steep bearish trajectory, along with our PSAR dot on top of the candles, there may be some ranging for the next few hours.
Be First to Comment