LTCCNY breaks above 100-day moving average for the first time since September 7th
Litecoin/Chinese Yuan Index (LTCCNY) Technical Analysis Report for Oct 23, 2020 | by Techniquant Editorial Team
LTCCNY finished the week 17.75% higher at 377.17 after gaining CN¥23.43 (6.62%) today on high volume. Today's close at 377.17 marks the highest recorded closing price since September 7th. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 371.29, LTC/CNY confirmed its breakout through the prior session high after trading up to CN¥14.06 above it intraday.
Daily Candlestick Chart (LTCCNY as at Oct 23, 2020):
Friday's trading range has been CN¥31.61 (8.94%), that's above the last trading month's daily average range of CN¥20.12. Weekly volatility is also higher, being way 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 White Candle which is known as bullish pattern and one bearish pattern, the Last Engulfing Top Pattern. The last time a Last Engulfing Top Pattern showed up on September 1st, LTCCNY lost -7.41% on the following trading day.
LTC managed to close above the 100-day moving average at 357.83 for the first time since September 7th.
Crossing above the upper Bollinger Band for the first time since Wednesday, prices have shown unusually strong upward momentum in the short-term. This could either indicate a potential buying climax after which prices might head back down towards the mean of the Bollinger Bands at 332.86 or signal the beginning of a strong momentum breakout leading to even higher prices.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Decisive Up Move" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for LTC/CNY. Out of 331 times, LTCCNY closed lower 58.91% 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 two trading days, showing a win rate of 59.82% with an average market move of 0.06%.