As forecasted on these pages several times last week, Litecoin was the star performer for currency traders this week. Repeated suggestions were made to load up on the asset while the coin was still under $4. I am aware of several readers who took the advice. The question, as always, is: “What comes next?”
As we can see, price went vertical exactly at the end of square on this long term daily chart. As this is still within the confines of the 4th arc pair, the asset is still a few days away from being free to rise to the levels it likely wants to go.
You will note that the wick of that long green candle exited the arc pair before being pulled back. This suggests that the arc is vulnerable, but that was already plain from charts we looked at last week. It remains to see on exactly which day pricetime will close on the sunny side of the arc. But when it does price will likely go considerably higher.
Bitcoin is still struggling with the 3rd arc pair on the longer-term daily chart. My personal bias is to sit on the sidelines until we get a convincing close above the arc before buying it. But when it does, we will likely see a new ATH.
Ethereum continues to muddle around the $50-$52 area. But it is still on the sunny side of support at top of square. Serious resistance will be found in the $62 are when it finally gets around to rallying agin. My suggestion would be to take money off the table at that point, with the option of buying the asset back at higher prices if it gets through the arcs (unexpectedly).
Monero was stopped hard by 1st arc pair resistance on this longer-term 4-hr chart. As long as it stays below that arc, it is a gamble to buy here. While my guess is that the major selling is finished, I would waiting until price closes convincingly above at least the 1st of the arc pairs, though waiting until the entire pair is violated is safer.
ZECUSD has been bouncing wildly all week. The good news for long traders is that support was found at the 1st arc pair on this 4 hour chart. We are, at this writing just about at the end of a square, so a rally here would not be surprising. The arc pair will be met again at ~ $75. It would be prudent to take some money off the table there, imho…
As we advised repeatedly several days ago, Dash was clearly overdue for a correction. We advised taking money off the table at $110. It is $74 at this moment. So… what’s next?
In my opinion, the chart still looks quite weak at these levels. I imagine support will be found somewhere between the top of square and the 2×1 Gann angle on this chart (~$63).
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.