LTC/USD Technical Analysis: The pair might be setting up for a move higher
|- Nice trendline break yesterday could indicate a further move higher
- Intraday 76.00 could provide support - before LTC/USD breaks higher
- Both the MACD and Stochastics have moved into positive territory
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Litcoin is not one of the best performing cryptocurrencies today but there has been a bullish trendline break that we need to take notice of. The trendline on the chart broke yesterday taking out the 77.00 wave high in the process. Today the price is still in the consolidation area but at slightly higher levels.
The area we need to watch is 78.13, which LTC/USD did breach for a short period of time. Recent price action has taken LTC/USD back down below that level but we need to watch for a break and close above as this would mean a continuation of the lower high lower low trend pattern on the 4- hour chart. If we are to see a push to higher levels, something we may see is a retest of a trendline or a previous consolidation high for support.
On the 4-hour chart, the stochastic indicator is in an overbought zone and could dip lower to give the price some room to breathe before another move up. The MACD histogram is also positive as the two moving averages diverge but interestingly both the moving averages have not crossed the mid-line to the upside so we cannot confirm a full change of trend yet.
On the zoomed in 1-hour chart below, you can see the resistance level hold. On the one hour chart, the 76.00 level could be seen as a good support point for support before we get a move higher. On the other hand, if it does break and hold below, this could be bearish and prices might retest the lows again. For now, the base case scenario is a break of 78.50 back to the upside so we can get another test of 80.00.
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