Trade Recommendation: Litecoin

Our December 7, 2018 trade recommendation for Litecoin (LTC/BTC) hit its target on December 24 when it climbed as high as 0.008637. Those who took on the recommendation grew their investments by more than 22% in less than two weeks.

If you were not able to take on this trade, do not fret because there’s always another opportunity. This is especially true as Litecoin appears to be bullish in the short-term and the medium-term. A look at the daily chart tells us that the market wants to go higher.

Technical analysis shows that LTC/BTC is forming an inverse and head shoulders pattern on the daily chart. The neckline of this pattern is 0.0086. Currently, the market is struggling to take out this resistance. Thus, Litecoin continues to build its base while range trading between 0.0078 and 0.0086. This gives you some time to set low bids.

Also, it is important to note that we’ve recently seen the same setup in ChainLink (LINK/BTC). On our December 31 trade recommendation, we saw the exact same pattern unfolding. ChainLink also struggled for some time to take out the neckline of the inverse head and shoulders pattern. It finally broke out of the pattern yesterday, January 3, 2019. Today, the market is up by over 30% from the time of our recommendation.

We believe that Litecoin will likely follow ChainLink’s footsteps. A breakout from the inverse head and shoulders pattern can send the market skyrocketing to our target.

The strategy is to buy on dips as close to 0.0078 as possible. As long as Litecoin stays above this level, it will likely gather the momentum to take out resistance of 0.0078 and rally to our target of 0.00983.

The process may take less than a month.

Daily Chart of Litecoin/Bitcoin on Binance

As of this writing, the Litecoin/Bitcoin pair is trading at 0.008351 on Binance.

Summary of Strategy

Buy: As close to 0.0078 as possible.

Target: 0.00983

Stop: 0.0075

 

Disclaimer: The writer owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Kiril is a CFA Charterholder and financial professional with 5+ years of experience in financial writing, analysis and product ownership. He has passed all three CFA exams on first attempt and has a bachelor's degree with a specialty in finance. Kiril’s current focus is on cryptocurrencies and funds, as he does his own crypto research and is a Product Manager at Mitre Media. He also has his personal website, InvestorAcademy.org where he teaches people about the basics of investing. His ultimate goal is to help people with limited knowledge of finance and investments to create investment portfolios easily, and in line with their unique circumstances.