LTCUSD Technical Analysis for 06/04/2018 – Wedge Breakout As Expected, Pullback Subsequent?
LTCUSD broke out of its falling wedge pattern previously highlighted and is beginning a steady uptrend. Price has been trading above an ascending trend line connecting the lows since May 29 and looks due for an additional test of support.
Applying the Fibonacci retracement tool on the newest swing low and higher shows that the 50% level lines up with the trend line around 123.20. A larger pullback could uncover help at the 61.8% Fib which coincides with an area of interest or former resistance about 120-122.
The one hundred SMA is above the longer-term 200 SMA to confirm that the path of least resistance is to the upside. In other words, the uptrend is more probably to resume than to reverse. These moving averages are also within the location of interest to add to its strength as a floor. A break below this, on the other hand, could lead to another selloff.
RSI is still pointing down to signal that bearish stress is present. Stochastic seems to be on the move down as properly, signaling that the correction could go on for a bit longer till the oscillators indicate oversold situations. If any of the assistance locations hold, LTCUSD could make its way back up to the swing higher at 130 or greater.
Cryptocurrencies staged a quite solid rebound late final week, with some attributing the rallies to month-finish flows. Other people say that optimism for a new month has also led to investors reopening their extended positions.
Besides, a good quantity of optimistic developments had been reported in the business final week, as some nations like Uganda are warming up to bitcoin and blockchain. The launch of mainnet for Tron and EOS has also generated interest whilst conferences also featured some good commentary from leaders in the industry.
At the same time, the dollar was on weaker footing due to trade war concerns, so a lot so that the currency shrugged off stronger than expected NFP information. There are no major catalysts from the US this week so sentiment could push LTCUSD about.
Published at Mon, 04 Jun 2018 03:57:19 +0000