LTCCNY runs into sellers around 400.90 for the third day in a row
Litecoin/Chinese Yuan Index (LTCCNY) Technical Analysis Report for Oct 26, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, LTCCNY ended Monday at 385.06 losing CN¥8.11 (-2.06%). Trading CN¥7.73 higher after the open, LTC was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (LTCCNY as at Oct 26, 2020):
Monday's trading range has been CN¥20.44 (5.2%), that's slightly above the last trading month's daily average range of CN¥19.29. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for LTCCNY. Prices continued to consolidate within a tight trading range between 371.72 and 401.62 where it has been caught now for the last three trading days.
Prices are trading close to the key technical support level at 375.95 (S1). Prices are trading close to the key technical resistance level at 401.62 (R1). Litecoin ran into sellers again today around 400.90 for the third trading day in a row after having found sellers at 401.62 in the previous session and at 398.00 two days ago.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and could now be heading back down towards the mean of the Bollinger Bands at 342.87. The last time this happened on October 22nd, LTCCNY actually gained 6.62% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the close-by swing high at 401.62 where further buy stops could get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior two Highs" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for LTC/CNY. Out of 148 times, LTCCNY closed higher 50.00% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 61.49% with an average market move of 3.91%.