Forming Bearish Head and Shoulders Pattern

Welcome to today's analysis! Let’s break down the current price action on LTC and potential trade setups.

🌐 Overview: LTC Forming Bearish Head and Shoulders Pattern
📈 LTC is currently forming a head and shoulders pattern, which is typically bearish and could indicate a potential downward move.

🔄 Current Scenario:

LTC has formed a left shoulder, head, and is now developing the right shoulder. The purple neckline is a key support level to watch.
A break below the purple neckline could signal a bearish continuation and a potential move toward the green line target level.
🔑 Key Levels to Watch
🔴 Neckline Support: Purple Neckline (Key level to watch for a breakout)
🟢 Target: Green Line Level (Measured move equal to the distance from the head to the neckline, projected downward from the breakout point)

🛠️ Trade Scenarios
📌 Bearish Scenario (Breakout Below Neckline)

If LTC breaks and holds below the purple neckline support, it could move toward the green line target level.
This breakout would confirm the head and shoulders pattern and suggest a potential downward trend.
📌 Bullish Scenario (Failure to Breakout)

If LTC fails to break below the purple neckline and instead moves higher, it could retest the resistance levels within the pattern.
A failure to hold below key resistance levels could indicate a potential reversal or further consolidation.
📌 Conclusion
LTC is forming a head and shoulders pattern. A breakout below the purple neckline support could signal a bearish move toward the green line target level. If the price fails to break out, further consolidation or a retest of resistance levels may be necessary