Crypto-Currencies: Bitcoin, Litecoin and Ethereum for May 6th

Crypto-Currencies: Bitcoin, Litecoin and Ethereum for May 6th

Crypto-currencies are now mainstream trading instruments. I am providing charts in this blog on a weekly basis. I plan to cover just three cryptos: Bitcoin, Litecoin, and Ethereum. The point of this weekly post is to show the crowd psychology behind the price movement to support high-quality trades.

BTCUSD — Achieved first target at 9702 and we are in the retest mentioned last week. Expecting middle band to be support which is 9080 currently. The trend line is just below also at 8811 and must hold for the rally to continue. Looking for the rally to continue through May 30th and possibly achieve 11847. From May 30th a significant retest should unfold which will define the price action for months to come. For now watch for support and enjoy the ride higher.

ETHUSD — Almost to the 880 as discussed and in a retest. Trend line support and middle band here are key at 690ish, support is expected for the next legg higher. Rally has leggs through May 30th cycle date. I will be watching for a significant retest after that time frame.

LTCUSD – Riding the upper bands and likely into a retest now to the trend line before achieving the $200 target mentioned last week. Support at 154 must hold before we see the high around 5-30. I am still expecting the $200 area and am looking for a retest after that date.

Retests so far have held during this rally, I am expecting it to continue through the end of this month. Is this just a flag or is this a full risk on move? The next major degree retest will decide that sometime in June. For now watch for the support test and higher prices.

 

About the Author

Stan Nabozny
Stan is a 20 year retail trading veteran and Co-Founder of The Art of Chart. A registered CTA (Commodity Trading Advisor), his specialties include using futures and options to trade Commodities, Equities, Currencies, Precious Metals and Bonds. Stan believes that Risk Management and Trader Psychology are more important that technical analysis and spends his time teaching and coaching other traders on these topics . Stan uses various trading systems and technical analysis approaches that integrate time and price in his work. See his latest articles here and www.huffingtonpost.com.

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