LTCJPY dominated by bulls lifting the market higher throughout the day
Litecoin/Japanese Yen Index (LTCJPY) Technical Analysis Report for Nov 21, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, LTCJPY ended Saturday at 9040.44 gaining ¥467.33 (5.45%) on high volume. Today's close at 9040.44 marks the highest recorded closing price since February 14th. The bulls were in full control today, moving the market higher 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 (LTCJPY as at Nov 21, 2020):
Saturday's trading range has been ¥653.92 (7.63%), that's above the last trading month's daily average range of ¥497.59. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for LTCJPY.
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. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
Prices are trading close to the key technical resistance level at 9092.81 (R1). After having been unable to move lower than 8429.61 in the previous session, LTC found buyers again around the same price level today at 8435.03. The last time this happened on November 16th, LTCJPY gained 3.05% on the following trading day.
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 6829.23.
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 close-by swing high at 9092.81 where further buy stops could get triggered. With prices trading close to this year's high at 9584.41, upside momentum might accelerate should LTC/JPY 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 Price Action based market condition "Up Close near high of period" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for LTC/JPY. Out of 287 times, LTCJPY closed lower 64.81% 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 five trading days, showing a win rate of 56.79% with an average market move of -0.30%.