Trade Recommendation: Litecoin
Our April 28, 2019 trade recommendation for Litecoin (LTC/USD) hit its initial target today, May 16, 2019. Those who followed the trade plan grew their investments by over 60% in less than a month.
The April 28th trade recommendation has one more target to reach and that is still valid. However, Litecoin made a technical reversal on the longer timeframe which prompted this trade alert. If you bought Litecoin close to $64 in April, you can use this article as guidance to increase your stop loss and target. Otherwise, you can jump on the bandwagon before Litecoin blasts off.
Technical analysis shows that LTC/USD has taken out resistance of $90 on the weekly chart. This triggered the breakout from an inverse head and shoulders pattern. The technical breakout signals trend reversal. In other words, Litecoin has officially entered bull territory. This bias is valid as long as the market trades above $90.
The breakout is currently inspiring a strong rally. Earlier today, Litecoin traded above $100. Do not chase the price. The weekly RSI is near overbought territory. Thus, we can expect a pullback.
The strategy is to buy on dips as close to $90 as possible. The 100 moving average on the weekly chart is crawling close to that level. It will act as additional support to help protect $90.
If bulls successfully convert $90 into support, our target is $145.
The process may take a month.
Daily Chart of Litecoin/US Dollar on Bitfinex
As of this writing, the Litecoin/US Dollar pair is trading at $94.44 on Bitfinex.
Summary of Strategy
Buy: As close to $90 as possible.
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.
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