There is a broad-based recovery of Lumens, NEO, LTC, Monero, EOS and LTC. That’s because G20 countries don’t intend to crack down on cryptocurrencies in general.
Now, considering our trade plan and our adherence to trading with the trend, it is likely that buyers might find reason to buy with tight stops below recent supports.
For NEO that means just below $50 and $150 in LTC/USD.
Let’s have a look at these charts:
While we can sellers driving prices below $0.20, XLM is somehow finding support below the 78.6% Fibonacci retracement level and our key support line as price action show.
But first, while sellers seem to be in charge, it’s the characteristic of yesterday’s candlestick that can hint of possible higher highs in the next couple of days. Buyers might end up driving prices higher with that bullish pin bar.
In the 4HR chart, there’s a bullish divergence pattern. In light of these developments, going forward every high is a shorting opportunity. Ideal buy targets can be anyway between $0.27 and $0.31 in the 4HR chart.
Despite the depreciation and trigger of our previous stop loss, I shall still on to a short term bull projection. As we can see from the chart, the week ended up strongly and with a bullish pin bar forming right at the 78.6%, a Monero bull spring board might right be in the offing.
$165 seems like a reliable support and of course considering the bullish reversal patterns in the 4HR chart, we can as well wait for a confirmation. Bullish confirmation in this case can only happen when there is a close above the middle BB in the 4HR chart, that’s about $200 assuming there is a build-up of buy momentum as the daily and 4HR confluence shows.
I will recommend searching for shorts at $260, that’s the immediate resistance line and it would be preferable when a stochastic sell signal prints.
There are basically two levels that can affirm our previous bull projections. Remember, for buys to be valid, we still need a breach of the 20 period MA in the 4HR chart.
From price action, that can happen assuming buyers build enough pressure-as daily and 4HR chart stochastic hints of.
Already there is a stochastic buy signal turning from deep the oversold territory. Additionally, if that bullish engulfing candlestick manage to stay above $5 then short term buyers can think of $6.2 on the upper limit.
It is likely that LTC prices are turning the corner and even though we are naturally pessimistic about this recovery, taking risks can either lead to profits or further losses.
Therefore, I recommend buying LTC now that prices seem to be taking a turn. Traders can wait for a break above the resistance trend line in the 4HR chart above.
Already, if there is confirmation of this bullish engulfing candlestick in the 4HR chart and LTC trend above the middle BB, then chances of that resistance trend breaking testing the resistance trend line is high. Aggressive traders can decide to go long now with conservative targets at $200 or higher.
With a bullish engulfing candlestick and a stochastic buy signal in our entry chart, it’s likely that prices might move higher in coming sessions.
First, notice that prices are already testing the middle BB at $65 in the 4HR chart and if there is a follow through after this, then NEO buyers can as well target $90, the 61.8% Fibonacci retracement level visible in the daily chart.
For now, it’s obvious that NEO is picking up from the 78.6% Fibonacci level at around $50. Buyers should enter and place their stops just below $50 and any move past $75 means moving stops to break even.
All BitFinex, Bittrex and CoinBase charts courtesy of Trading View