Market Dynamics

05 April 2019

Followers of our blog might remember our previous week’s trading call in Litecoin where we had shown a rounding bottom formation on daily chart with an advice to go long. Well, this week’s pleasant upside rise was not there in our wildest dreams and that’s precisely what makes trading such a beautiful game of probabilities. Neither it is possible to predict prices consistently, nor is that required at all. All we need is to find a small edge and take many smaller risks over time such that the edge plays itself out over the longer time frame. Sometimes technical patterns and at other times some statistical data mining are good enough to produce that tiny edge.

Litecoin at present is trading at $87 and likely to face resistance here. A consolidation or pull back will be extremely healthy for longer term uptrend. Supports exist in the regions of $84, $80 & $76. Due to extremely high volatility, trading at this point will be risky. Aggressive traders could however trade with smaller quantities in the direction of uptrend with the above supports as stop loss.