LitecoinShort
LTC breaks HH and HL Pattern
Litecoin Broke its HH and HL pattern (higher high, and higher low). It was in a channel following this continuation pattern marked by the dashed black lines. This pattern was broke when Litecoin failed to make a HL, instead created a LL marked in red text. We can speculate and anticipating a LH coming. If we do see a lower high we will have created a bearish pattern.
Looking for clues.
1. Currently we have 3 points of contact in this new potential channel/trend. I have created a possible alternative channel that could play out rapidly by such rejection from the bears.
2. The Lower high could range from the prices of $155 to $150 USD. Why do you ask? I used a Fib from the top of the drop to the bottom and a rejection of the 618 would be a clear bearish indicator sending the price falling through channel below. Coincidently the price of 155 aligns with the previous channel creating noticeable resistance from the previous channel pattern.
3. On the 1hr chart you can see a gap in the MA's from the same distance of 149-155. I marked the 9,30,50 MA's on the 4hr chart with horizontals rays.
4. There is no sign of divergence on the RSI on the 1H or 4H which shows the new pattern does not show signs of reversing anytime soon.( Whereas in the previous upward channel there was signs of divergence and oversold)
5. We are currently in flag formation that could break to the upside or downside. I do think a confirmation of a lower high would make more sense to solidify the channel. Next support is at the 139. I drew two possible scenarios of a bullish and bearish break of the current flag pattern.
Looking for clues.
1. Currently we have 3 points of contact in this new potential channel/trend. I have created a possible alternative channel that could play out rapidly by such rejection from the bears.
2. The Lower high could range from the prices of $155 to $150 USD. Why do you ask? I used a Fib from the top of the drop to the bottom and a rejection of the 618 would be a clear bearish indicator sending the price falling through channel below. Coincidently the price of 155 aligns with the previous channel creating noticeable resistance from the previous channel pattern.
3. On the 1hr chart you can see a gap in the MA's from the same distance of 149-155. I marked the 9,30,50 MA's on the 4hr chart with horizontals rays.
4. There is no sign of divergence on the RSI on the 1H or 4H which shows the new pattern does not show signs of reversing anytime soon.( Whereas in the previous upward channel there was signs of divergence and oversold)
5. We are currently in flag formation that could break to the upside or downside. I do think a confirmation of a lower high would make more sense to solidify the channel. Next support is at the 139. I drew two possible scenarios of a bullish and bearish break of the current flag pattern.
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