LTC Update 15 January

G'day Guys,

Since bitcoin still seems to be making up its mind ( but watch for a reaction @ $960 (Gox)), I thought we'd take the opportunity to look across at Litecoin.

Let's start with a chart:

As you can see, like bitcoin, we've traded sideways out of what looked like a nicely re-building uptrend. And while price hasn't actually moved that far (in real terms) the technical picture has weakened somewhat.  Essentially, this sideways slide presents 2 opportunities against which sellers might launch a bearish counter-attack.  The first is at $24.65 (point One) and the second is at around $26 (point 2).

Having said this price has, broadly, managed to stay within the limits of the long term uptrend and near term momentum looks to building again, so there remains every chance that this market will carve back up through resistance at a moment of its choosing.

And if this analysis sounds somewhat diffident its because directionality across all the main crypto-currency markets is weak.  It would be foolish and counter-productive to draw emphatic conclusions when they are not supported by the current mood of the market, or the price action which that mood drives.

However, if I have learnt anything over the last 10 years trading it is that markets tend to make their most significant moves just as everyone watching them starts to fall asleep.  The second thing I have learnt is that quiet markets offer the best opportunities for breakout - or momentum - entries.  With this in mind, if LTC does suddenly steam back through $26 on real energy, you might consider a small momentum punt Long, if you aren't already in the market.

Just Sayin'

Rob @ BitScan

LTC Update 12 January

G'day!

With BTC pushing up nicely following our recent BUY recommendation, let's have a look across at Litecoin to see how this market is faring.

As ever, we'll start with a chart:

In our first look at LTC, back on 5-6 January we identified $27.90 (Gox) (and $31.35 beyond it) as key resistance moving forward, and $21.46 as key support below the market.

Incredibly, within 24 hours of submitting this post the market had tested all three of these key levels. This means that had you followed our advice and sold at $27.90, then bought back at $21.46, you'd currently be sitting on a tidy profit of $4.50 per coin having endured no 'heat' whatsoever.  Not bad ;-)

Also, do you see how the the confluence of horizontal and rising support combined to arrest Litecoin's fall?  This tells us that the smart money was waiting for this correction to start accumulating more coin - and it is a very bullish indicator.

Since then, buyers look to have continued accumulating against rising support and as a result we're now trading back above the short term inflection point of $24.65; another bullish indication.

While it wouldn't surprise us to see LTC dip back to re-test @24.65 as support, every indication is that we are firmly established in a renewed rally which has the potential to re-test $27.65 once the momentum traders give up holding out for a better entry price.  And if we power through $27.90, as we did at the last attempt, $31.35 will again hove into view.

So, what would shake our bullish conviction?  Well, a sharp move back below $24.65 would certainly grab our attention and a deeper sell-off to below $21.46 would challenge LTC's virtuous long-term uptrend meaningfully.

That's all we have for now but we'll keep you updated as the situation develops.

Rob @ BitScan