Trade Recommendation: Litecoin/Ethereum

Our July 18, 2018 trade recommendation for the Litecoin/Ethereum (LTC/ETH) pair hit its mark on September 5 when the pair went as high as 0.2537294. Those who followed the trade recommendation grew their investments by almost 40% in a little over a month.

While we wanted to see the pair reach 0.30 before correcting, it only went as high as 0.29231964 on September 27. This price action is important because it shows that LTC/ETH is still in consolidation. This means that there are more opportunities to accumulate positions before the market explodes.

Technical analysis shows that LTC/ETH is creating a large symmetrical triangle. The daily chart reveals that the triangle has just concluded its D wave. This happened when the pair confirmed resistance of 0.29 on September 27. Now, we are in the early stages of the E wave. This means that LTC/ETH will likely go through a final corrective wave before breaking out of the pattern.

The 30-day moving average supports our view. LTC/ETH just went below this indicator, suggesting that the price will tumble in the coming weeks.

The strategy is to accumulate positions during this pullback as close to 0.20 as possible. If you haven’t sold your positions yet, we suggest you sell them now considering that the market is still above 0.25. If the long-term support holds, which it likely will, then LTC/ETH may rally to our target of 0.40.

The process may take three months.

Daily Chart of Litecoin/Ethereum on Bittrex

As of this writing, the Litecoin/Ethereum pair is trading at 0.2593265 on Bittrex.

Summary of Strategy

Buy: Buy on dips as close to 0.20 as possible.

Target: 0.40

Stop: 0.19

 

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.