Our July 30, 2019 trade recommendation for Litecoin (LTC/USD) hit its initial target. On August 5th, the cryptocurrency bounced as high as $107.04. Those who followed the trade plan grew their investments by over 20 percent in about a week.
Unfortunately, the pair corrected as soon as it hit our initial target. The lack of a strong follow-through was an indication that suggested that bulls were exhausted. Thus, we decided to stay away from the coin until it flails bullish signals. We’re seeing those signals today.
Technical analysis shows that LTC/USD has broken out of a falling wedge when it took out the diagonal resistance of $65 on September 2nd. The breakout alleviates the heavy selling pressure that has kept the coin bearish for a couple of months.
In addition, technical indicators are suggesting that momentum has shifted to the side of the bulls. We see the daily RSI flashing a bullish divergence while trading close to oversold territory. On top of that, we spotted a bullish crossover on the daily MACD to further affirm our bullish stance.
The strategy is to buy as close to the horizontal support of $65 as possible. If bulls can keep the coin from falling further, we’ll likely see a bounce to our initial target of $82.50. Above that, the next target is $100.
The process may take less than a month.
Daily Chart of Litecoin/US Dollar on Coinbase
Summary of Strategy
Buy: As close to $65 as possible.
Target: $82.50 and $100.
Disclaimer: The writer owns bitcoin, Ethereum, and other cryptocurrencies. He holds investment positions in the coins but does not engage in short-term or day-trading.
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