LTCUSD Technical Analysis for 11/20/2017 – Quick Countertrend Opportunity

LTCUSD continued its ascent after bouncing off the area of interest previously highlighted. Price is now back to the channel resistance and might be due for another bounce.

In that case, LTCUSD might make its way back down to the channel support around 60-62.50. The 100 SMA is above the longer-term 200 SMA to signal that the path of least resistance is to the upside. Also, the gap between the moving averages has widened to reflect stronger bullish momentum. These moving averages line up with the channel support to add to its strength as a floor.

Stochastic is heading south to show that buyers need to take a break and let sellers take over. RSI has a bit more room to climb so enough bullish momentum could still lead to a break past the channel resistance at 72.50. If that happens, a steeper climb could take place.

Litecoin appears to be trailing bitcoin in its climb as sentiment has improved in the cryptocurrency. Rival versions of bitcoin are barely holding a candle to the core version, assuring investors that the original digital assets like litecoin are still stronger than the newer ones.

Meanwhile, the dollar has been unable to hold on to its gains as traders are still wary of setbacks to tax reform. Although Trump has signaled willingness to compromise, there is still a lot of opposition among lawmakers. Any positive updates this week could mean a rebound for the dollar while more issues could lead to more losses.

Cryptocurrencies could also take their cue from market sentiment, especially as political uncertainties are making their way back to the headlines. The UK government has had plenty of ups and downs in the past few days while Germany is encountering some problems of its own. In particular, Merkel has been unable to strike a three-way coalition with the Greens and FDP, which could prompt another round of elections and more uncertainty.

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