On the four hour chart, we can see that there has been little movement in LTC. Personally, I was hoping that the Earth would shake, but the has been muted. If we look at the action inside of the flag, we can see that the price action appears to be building a pattern. Also, price action has broken below the midline of the channel, as well as the 20 (in blue.) This is a particularly comforting thing to see, especially as the closes on the price action. So we now have a mixed bag of signals. We have a , that has a pattern building inside of it. Perhaps we do see a breakdown, and a subsequent test of the 50 (in orange) or the bottom of the channel. The truth is, I don't know. Nobody knows. But that's what analysis is all about. We assess the market, and identify a pattern. Then, we wait for the breakout to occur, and then we place the trade. That's why I always tell you not to trade until you see the breakout. I practically shout it from the mountaintops! Well, there aren't any mountains here in the great city of Houston, but you get the picture. You could have the biggest you've ever seen, and then you get all giddy and excited and place your trade, thinking it will break out for sure, and then it breaks to the downside, in a violent and disgusting way. Makes your heart sink into the pit of your stomach, doesn't it? Well, at least you have your dear friend Magic, to guide you through the fog. Stay focused my friends! Watch for the breakout. Up or down. Because nothing is certain in this market. With that said, the bias remains to the upside. We remain in a new , in a big , and we've just broken above the blue tunnel of death. So, yeah, we're choppin around in the flag, but things are still looking up. Even if this thing breaks down, there is a lot of support just below us. The 50 , the 61.8% retrace, and the bottom of the pink channel, to be exact. I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic. revoir.
This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, comment, like, and share on social media. Good luck trading everyone!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
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