Brother Sheng Talks LTC: Technical Indicators Show Bearish Characteristics, Caution Required for Downward Risks

1. Technical Indicators: Multiple Indicators Release Bearish Signals

• Moving Average (MA): Prices may be below key moving averages like the 50-day SMA and 200-day SMA, with moving averages flattening or turning down. The appearance of a 'death cross' and bearish arrangement is an important signal for medium to long-term bearish outlooks. At the same time, short-term moving averages are above the price, forming dynamic resistance that suppresses rebounds.

• Relative Strength Index (RSI): Daily RSI is likely below the neutral line of 50, and may even fall into the weak range of 30-40, with selling power dominating the market. If RSI cannot recover above 50, the downward momentum will continue.

• MACD: Daily MACD may be below the zero line, with the fast and slow lines showing a bearish arrangement. The negative value histogram may continue to expand, confirming that the downward momentum is gradually strengthening.

2. Trading Volume: Weak Characteristics are Significant

Recently, trading volume may have increased during price declines and shrunk during rebounds. The typical weak pattern of 'price falling with volume increasing, price rising with volume decreasing' reflects continuous capital outflow, with selling pressure being real and active.

3. Pattern Analysis: Key Levels Face Breakout Pressure

Prices may be constructing bearish patterns like 'head and shoulders' or 'descending triangles' in the right half. The current price of 114.6 may be at key contention points such as the neckline and lower edge of the pattern. If it effectively breaks down, a significant measured decline is expected.

LTC Brother Sheng's Afternoon Thoughts:

Short near 115.8-114.5, targeting first at 112.3, and looking down to 109.6 if it breaks. #山寨季将至？ #ltc