Hi Traders! Litecoin double scenario is forming at the moment, this provides us short term sell opportunities and longer term possible buy opportunities. A detailed analysis of this double scenario is as follows:
LTCUSD Daily Chart:
On the daily chart we had a bullish divergence and then the price moved higher creating higher highs thus forming a bullish convergence for us. We may consider this as an evidence of bullish pressure, in addition to this we also have a good uptrend line that has formed and the price is respecting it so far. Currently we may expect a correction to happen towards this dynamic support. Hence we may now start looking for bearish evidences on lower timeframes in order to join the bears.
LTCUSD H4 Chart:
On the H4 chart we have a bearish divergence that has formed which we may consider as an evidence of bearish pressure. Hence we may currently look for short term sells with more bearish evidences.
Later on we will focus on possible buys. The zone marked in the box is critical to hold (the breakout zone and the uptrend line). If that zone is broken down, then the buy idea is invalidated.
Note: It is always recommended to look for confirmations before you jump into any trade. If you are not sure about how to trade this sell and buy setup then you can use any setup and strategy that you have in your arsenal to look for bearish and bullish moves and join this sell and buy trade.
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