Analysis provided by Ashton Fraser, learn more about his trading strategies with the Forex Reversal indicator.
Litecoin vs Euro has been rising steadily over the weekend, but some warm resistance means the retrace could dig further.
Let's take a look at the LTC/EUR intraday M30 chart below (click to expand):
I've performed the Fibonacci study from the low on Friday the 14th at 11.900, until this afternoon's high at 12.622.
As we can see, the price hike, albeit minor was pretty smooth, as reflected by the middle Bollinger line, which has virtually been a constant riser.
At 1pm GMT, we saw a relative large candle close above the upper Bollinger band, without any lower or upper wicks. Apparently a very bullish indication, except in this case, 13 is a psychological round number, in addition to the fact price has already tested that area before last week. We also had the Stochastics approaching overbought territory.
If you look at the very next candle, you'll see how it's almost a mirror image of the previous candle, except with a slight larger body. Again, no upper or lower wicks to speak of. And Accelerator Oscillator and Awesome Oscillator turned red soon after, it wasn't surprising to see price fall down to the 38.2% Fibonacci retracement level, where it's currently residing.
I expect a bounce of this level back to the 23.6% level, at around the price mark of 12.45, later tonight or tomorrow morning, since we have the AC now green with the Stochastics in an oversold zone.
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