LTCUSD finds buyers at key support level
Litecoin/US Dollar Index (LTCUSD) Technical Analysis Report for Oct 26, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, LTCUSD finished Monday at 56.88 losing $1.97 (-3.35%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (LTCUSD as at Oct 26, 2020):
Monday's trading range has been $4.26 (7.24%), that's above the last trading month's daily average range of $2.74. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for LTCUSD.
After trading down to 55.06 earlier during the day, the market bounced off the key technical support level at 56.72 (S1). The failure to close below the support might increase that levels importance as support going forward.
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 50.81. The last time this happened on October 13th, LTCUSD lost -0.18% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for LTC/USD. Out of 410 times, LTCUSD closed higher 50.00% 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 49.51% with an average market move of 4.46%.