LTCCNY pops to highest close since February 14th
Litecoin/Chinese Yuan Index (LTCCNY) Technical Analysis Report for Nov 21, 2020 | by Techniquant Editorial Team
LTCCNY ended Saturday at 567.61 gaining CN¥25.15 (4.64%) on high volume. Today's close at 567.61 marks the highest recorded closing price since February 14th. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (LTCCNY as at Nov 21, 2020):
Saturday's trading range has been CN¥41.06 (7.57%), that's slightly above the last trading month's daily average range of CN¥40.62. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently notably 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 Thursday, LTCCNY lost -1.76% on the following trading day.
Prices are trading close to the key technical resistance level at 575.34 (R1). After having been unable to move lower than 533.38 in the previous session, LTC found buyers again around the same price level today at 529.60.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day although might signal a potential change in momentum that could lead to a correction back down towards the center of the Bollinger Bands at 436.94.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the nearby swing high at 575.34 where further buy stops could get activated. With prices trading close to this year's high at 621.91, upside momentum might accelerate should Litecoin be able to break out to new highs for the year.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Last Engulfing Top Pattern" stand out. Its common bearish interpretation has been confirmed for LTC/CNY. Out of 85 times, LTCCNY closed lower 58.82% of the time on the next trading day after the market condition occurred.