LTCCNY closes below its opening price unable to hold early session gains
Litecoin/Chinese Yuan Index (LTCCNY) Technical Analysis Report for Oct 13, 2018
Moving higher for the 2nd day in a row, LTCCNY finished Saturday at 365.29 gaining CN¥6.37 (1.77%) on low volume. Trading CN¥5.79 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (LTCCNY as at Oct 13, 2018):
Saturday's trading range has been CN¥7.84 (2.14%), that's below the last trading month's daily average range of CN¥15.61. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for LTCCNY.
Two candlestick patterns are matching today's price action, the Southern Doji which is known as bullish pattern and one neutral pattern, the Doji.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and might now be heading back up towards the mean of the Bollinger Bands at 399.68. The last time this happened on August 12th, LTCCNY gained 7.58% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling could accelerate should prices move below the close-by swing low at 342.63 where further sell stops might get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Gap Up" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for LTC/CNY. Out of 78 times, LTCCNY closed lower 60.26% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 66.67% with an average market move of -2.98%.
With five out of the seven Major Cryptocurrencies closing higher today, the ones that stand out on the positive side are DASHUSD gaining 1.97% and ETHUSD closing 1.6% higher. On the flipside the worst performer has been XRPUSD closing -0.38% lower. Looking at the other Minor Cryptocurrencies, the winners of the day have been STEEMBTC surging 5.26% and SCBTC closing 4.08% higher. The worst performers of the day have been BCNUSD tanking -4.43% and BTGBTC closing -2.26% lower...read more