Analysis: Watch Litecoin again
Litecoin has successfully closed above the arc that had been dragging it down. I believe the low is in and a rally will ensue to at least $40.
Stellar Lumens had had a huge advance, stopped not once but twice by the top of this setup. We are now below the 5th arc again, and just below (at?) the 2×1 angle which has provided support since the rally began. We are sitting on an energy point in time (red vertical line). This is not a buy here. At best it is a hold. Traders sitting on huge profits might consider taking some profits here.
Wow. Words can hardly express. In hindsight, the gap up (highlighted in yellow) should have clued me in that a monster rally was beginning. A close above the 3rd arc pair prompted me to tweet that “the rally has legs”. While true, that tweet understated the emerging situation.
The rally stopped at the 5th arc and a rather violent reversal ensued. What’s next now that the coin has regained most of that correction? We will need to see if we can get a close above the 5th arcs to know. IMHO it is a hold here for now, though as in the case of XLM, traders sitting on huge profits might take some profits here.
In our last column we expressed hope that DASH might finally get free of the arc, but that hope was not realized. It is still stuck to the arc like it was glued there. However, the top of the square is just below. This has provided repeated support in the past, and will likely do so again.
This chart is littered with arrows showing how this chart has respected the setup above. A few days ago, when that long green candle crossed the 3rd arc, I thought that the arc was defeated. It faked me out with that long wick that touched the 1×1 well above the arc. It was a reminder to wait for a close above the arc. Pricetime pulled back to the arc before the close, and has been stuck in the arc ever since. We are at an energy point again. Will it break free now? Maybe so, but let’s wait for a close on the sunny side of the arc before we buy it.
Remember: The author is a trader who is subject to all manner of error in judgment. Do your own research, and be prepared to take full responsibility for your own trades.