LTCGBP breaks below key technical support level
Litecoin/British Pound Index (LTCGBP) Technical Analysis Report for Oct 26, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, LTCGBP finished Monday at 49.31 losing £1.74 (-3.41%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (LTCGBP as at Oct 26, 2020):
Monday's trading range has been £3.82 (7.48%), that's above the last trading month's daily average range of £2.75. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for LTCGBP.
Prices are trading close to the key technical support level at 47.89 (S1). Prices broke below the key technical support level at 50.68 (now R1), which is likely to act as resistance going forward. After having been unable to move above 52.15 in the previous session, Litecoin ran into sellers again around the same price level today, failing to move higher than 51.93.
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 44.12. The last time this happened on October 13th, LTCGBP lost -11.53% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Support S1" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for LTC/GBP. Out of 224 times, LTCGBP closed higher 58.93% 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 50.00% with an average market move of 6.80%.