Litecoin has traded within a narrow range since it’s 100% rally of a few days ago. Regular readers will note that in the previous column we suggested that price would likely be constrained a few days until pricetime can escape from the confines of the 4th arc pair (green). Well, price is bumping along the arc as these words speak, so unless there is a sudden reversal here (not expected) price will likely close on the sunny side of the arcs in the near future (in 48 hours or less).
Once we get that buy signal there will likely be be a very quick and significant move to the upside. Aggressive traders might take a long position with a reasonable stop here. But more patient traders will wait for the buy signal, even though that will likely mean buying at a higher price.
As I am not a big fan of Ripple (for reasons that may not be well-enough informed) I was not watching this asset. Notified of the rally I looked at the chart and was impressed by the chart. As you can see, pricetime was stopped by the 3rd arc pair of this longer-term setup. As I am writing, it looks like price wants to get above that arc. My guess is that it will do so, though a buy signal has not yet been given.
The 5th arc is all the way up to .03856, and chart geometry suggests that it is likely to get there in a week’s time (assuming that the present 3rd arc resistance yields).
Bitcoin touched the arc and withdrew, as shown above. Overall,despite the recent rally, it is still not giving a buy signal. There is an ‘energy point’ in a day or two (purple line). If price is at or above the arc, a rally is likely. But if price is below the arc, another decline is more likely. We will see…
Remember: The author is a trader who is subject to all manner of error in judgement. Do your own research, and be prepared to take full responsibility for your own trades.