LTCUSD finds buyers at key support level
Litecoin/US Dollar Index (LTCUSD) Technical Analysis Report for Nov 22, 2020 | by Techniquant Editorial Team
LTCUSD finished Sunday at 82.95 losing $4.22 (-4.84%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (LTCUSD as at Nov 22, 2020):
Sunday's trading range has been $9.39 (10.77%), that's far above the last trading month's daily average range of $5.67. 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 LTCUSD.
After trading down to 78.56 earlier during the day, LTC/USD bounced off the key technical support level at 79.93 (S1). The failure to close below the support could increase that levels importance as support going forward. Prices are trading close to the key technical resistance level at 88.44 (R1). After having been unable to move above 88.44 in the prior session, the cryptocurrency ran into sellers again around the same price level today, missing to move higher than 87.95.
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 66.93. The last time this happened on Wednesday, LTCUSD actually gained 11.06% 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 412 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 50.00% with an average market move of 4.47%.