On the 4hr chart, we can see that there is a large (not Flag) that has been formed since the latest major run.
Inside this Large , we can easily see a small has formed. Notice how the flag of the small is the largest seperation of the larger . This is important to note, because it brings a 2 part equation to my Target # 1, should LTC breakout above the top level of the Large .
There has been a cross on the , however it is not extremely strong, and the level is still above +10!
I believe that if LTC breaks above the top of the small , we will see a corresponding break of the large the my Target 1 would then be activated.
For educational purposes, if LTC were to break the top of the small , it would be a buy signal for Target 1.
Additionally, if LTC breaks the top of the large , Target 2 would be in our sights.
But wait, dont those 2 coincide with each other? Well, yes, they do! But I would treat them separately and stagger your buying.
I say this because, I could easily see Target 1 be met, then a correction back down to our current levels, before continuing our move to Target 2. In short, I am looking at Target 1 to be met in the short term, while Target 2 should be met, however it may take us a little bit longer to get there!
Thanks for reading guys, and as always, comments and questions are always appreciated and welcomed!
Stay safe trading my friends, and keep an eye on those markets!
LTC has dropped to the bottom of the large bull pennant. To my knowledge, the LCC fork has not happened yet, so this selloff is quite confusing. We need to be very cautious here, as a break of the large bull pennant would leave this analysis invalid, however it would need to be a close below, and not just a temporary break. If it closes below the large bull pennant, i am looking at the 50 day EMA and the 205 levels as immediate support. There could also potentially be another sell off after the LCC fork, albeit im not expecting it to be extremely overwhelming, but if this happens at the same time of the breaking of the bull pennant, well....we could be retracing back much further than originally thought, and we may have to question if this was a true market reversal, or is there actually one final drop to the bottom? Only time will tell, I will be following this EXTREMELY carefully over the next few hours, at the sacrifice of precious sleep!