LTCCNY closes below its opening price unable to hold early session gains
Litecoin/Chinese Yuan Index (LTCCNY) Technical Analysis Report for Nov 22, 2020 | by Techniquant Editorial Team
LTCCNY finished Sunday at 554.73 losing CN¥12.88 (-2.27%). Trading CN¥10.54 higher after the open, the cryptocurrency 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 in a lackluster session.
Daily Candlestick Chart (LTCCNY as at Nov 22, 2020):
Sunday's trading range has been CN¥27.62 (4.87%), that's below the last trading month's daily average range of CN¥40.96. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for LTCCNY. Prices continued to consolidate within a tight trading range between 529.60 and 578.15 where it has been caught now for the last three trading days.
After moving higher in the previous session, LTC/CNY closed lower but above the prior day's open today, forming a bearish Harami Candle.
Prices are trading close to the key technical support level at 529.60 (S1). Unable to break through the key technical resistance level at 575.34 (R1), LTC closed below it after spiking up to 578.15 earlier during the day. The failure to close above the resistance might increase that levels significance going forward. When prices bounced off a significant resistance level the last time on November 12th, LTCCNY actually gained 17.32% on the following trading day. Litecoin ran into sellers again today around 578.15 for the third trading day in a row after having found sellers at 570.66 in the previous session and at 575.34 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 445.60.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling might speed up should prices move below the close-by swing low at 529.60 where further sell stops could get triggered. With prices trading close to this year's high at 621.91, upside momentum might accelerate should the market be able to break out to new highs for the year.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Resistance R1" stand out. Its common bearish interpretation has been confirmed for LTC/CNY. Out of 320 times, LTCCNY closed lower 61.25% 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 three trading days, showing a win rate of 55.31% with an average market move of -0.85%.