Leading the breakout?

20 Şub 2019

LTC just closed a 4H candle above the green ascending channel, reaching the target of the previous H&S (orange arrow). Now, depending on how much FOMO there's in the market, it could take a couple days to digest the move up or it could shoot straight up. But given that we previously broke the 237-day long descending channel and we haven't reached the target yet (red arrow) and we already close a significant candle above the green channel which targets the same area as the red channel, all things are pointing that this is an impulsive wave 3 and it's going to meet at least the 1.618 extension. I'd take profits in the $63 area if there's significant resistance there, but ideally I'd take partial profits in that area and let go some of the position in case it decides to go to the upper extensions targetting the 14.50% of the 2018's bear market swing. When it retraces down, it will at least retest the green channel breakout so don't hesitate to take profits.

Yellow and grey Fibs are there trying to help with timing and possible shape of the swing. ADX is heading north signaling the bulls have grabbed this one by the horns, so I'd disregard RSI bearish divergence but with a stop loss below yesterday's lows just in case.