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HomeTradingLTCUSD Technical Analysis for 12/19/2017 – Bulls Spring Back to Life

LTCUSD Technical Analysis for 12/19/2017 – Bulls Spring Back to Life


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LTCUSD recently broke out of its symmetrical triangle formation, resuming its northbound route. The chart pattern spans $260 to $350, so the resulting upside break could be of the same height.

However, stochastic is already indicating overbought conditions to reflect exhaustion among buyers. This could pave the way for a correction to the nearby support levels. RSI is also turning lower to indicate the presence of bearish pressure.

Applying the Fib tool on the latest swing low and high shows short-term support level at the broken triangle resistance and the area of interest at $340. The 100 SMA is still above the longer-term 200 SMA to confirm that the path of least resistance is to the upside or that the rally is more likely to resume than reverse.

A larger correction could still find support at the 100 SMA dynamic inflection point around $300 or the 200 SMA at $280. A break below these levels could indicate the start of a downtrend.

The dollar is enjoying a lot of support from tax reform progress, especially as lawmakers have come up with a final version and will be voting on it this week. Approval could allow US President Trump to sign it into law later in the week, which would likely bring strong gains for US equities and the currency.

Risk appetite has been in play, though, and the persistent gains in the cryptocurrency market have revived investor interest in altcoins including LTCUSD. Bitcoin remains the highest in demand but it looks like rival digital assets are catching up as its rallies are showing exhaustion near the $20,000 major psychological level.

In contrast, other altcoins like LTCUSD are much cheaper and could enjoy more potential upside, something that is still appealing to investors. However, bitcoin has the benefit of having futures on CBOE and CME then later on on Nasdaq, which means that it’s more accessible to institutional and retail investors.


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