LTCEUR closes within prior day's range
Litecoin/Euro Index (LTCEUR) Technical Analysis Report for Nov 22, 2020 | by Techniquant Editorial Team
LTCEUR finished Sunday at 69.86 losing €3.49 (-4.76%). The bears were in full control today, moving the market lower throughout the whole session. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (LTCEUR as at Nov 22, 2020):
Sunday's trading range has been €4.02 (5.48%), that's slightly below the last trading month's daily average range of €4.11. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for LTCEUR. Prices continued to consolidate within a tight trading range between 68.43 and 73.83 where it has been caught now for the last three trading days.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. After moving higher in the previous session, LTC/EUR closed lower but above the prior day's open today, forming a bearish Harami Candle. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on November 15th, LTCEUR actually gained 18.18% on the following trading day.
Prices are trading close to the key technical support level at 68.43 (S1). The market ran into sellers again today around 73.35 for the third trading day in a row after having found sellers at 73.74 in the previous session and at 73.83 two days ago.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and might now be heading back down towards the mean of the Bollinger Bands at 56.53.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling could accelerate should prices move below the close-by swing low at 68.43 where further sell stops might get triggered.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Black Candle" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for LTC/EUR. Out of 514 times, LTCEUR closed higher 56.61% 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 49.42% with an average market move of 3.71%.