LTCGBP stuck within tight trading range
Litecoin/British Pound Index (LTCGBP) Technical Analysis Report for Nov 22, 2020 | by Techniquant Editorial Team
LTCGBP ended Sunday at 68.63 losing £2.00 (-2.83%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (LTCGBP as at Nov 22, 2020):
Sunday's trading range has been £5.63 (7.97%), that's above the last trading month's daily average range of £4.36. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for LTCGBP. Prices continued to consolidate within a tight trading range between 65.33 and 71.13 where it has been caught now for the last three trading days.
Prices are trading close to the key technical support level at 65.33 (S1). The cryptocurrency found buyers again today around 65.50 for the third trading day in a row after having found demand at 65.33 in the prior session and at 65.61 two days ago. The last time this happened on November 12th, LTCGBP gained 5.94% on the following trading day.
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 55.74.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling might accelerate should prices move below the nearby swing low at 65.33 where further sell stops could get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to previous High" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for LTC/GBP. Out of 822 times, LTCGBP closed higher 50.61% 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 50.97% with an average market move of 4.74%.