Hi Traders! Litecoin short term forecast and technical analysis is here. The way I would like to analyze the chart for setups is based on multi-timeframe confirmations because in my POV if we get more evidences on different timeframes for the same direction then it makes the setup much more reliable. If you would like to learn more about the way we trade and the technical analysis we use then check out the Traders Academy Club Spoiler alert – free memberships are available! Let’s start our analysis from the highest timeframe which will be the daily chart here.
On the daily chart, the price which is moving lower has reached a key support zone formed by the 61.8%(103.18) Fibonacci expansion level of the first wave. Also, we could see that the price has created multiple bullish divergences that has formed between the first low that has formed at 118.44 and the second low that has formed at 91.57 based on the MACD indicator, which we may consider as evidence of bullish pressure. In addition to this, based on the Stochastic Oscillator we could see that the price has reached its extreme, which we may consider as yet another evidence of bullish pressure. So based on all this, my short term view is bullish here and we may now move down to lower timeframe and look for evidences supporting this bullish view.
On the H1 chart, we had a bullish divergence that has formed between the first low that has formed at 98.06 and the second low that has formed at 96.16 based on the MACD indicator. Then the price moved higher and broke above the last high at 103.78 creating higher highs, thus forming a classical setup of bullish divergence followed by bullish convergence. Hence as per the book scenario, after a bullish convergence, we may look for corrections to happen and then further continuation to the upside. Currently it looks like a correction is happening. In addition to this, the ADX indicator gave a bullish signal here at the cross of +DI (green line) versus -DI (red line) and the main signal line (silver line) reads value over 25, we may consider this as yet another evidence of bullish pressure. Until the strong support zone (marked in blue) shown in the image below holds my short term view remains bullish here and I expect the price to move higher further after pullbacks.
Litecoin D1(Daily) Chart Analysis
Litecoin H1 (1 Hour) Chart Analysis
It is always recommended to look for confirmations before you jump into any trade. If you are not sure about how to trade this short term buy setup then you can use any setup and strategy that you have in your arsenal to look for bullish moves and join this buy trade.
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Happy Trading!
Arvinth Akash
Traders Academy Club Team
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