Litecoin breaks triangle pattern and reaches our target

In our previous analysis we noted the triangle pattern forming in the LTC/USD and we said that a break above $191 would push price towards $215. On Friday price broke out of the triangle. On Saturday price has reached the target and then some more. Bulls need to be cautious.

Triangle patterns are usually found near the end of the trend. Price has broken the triangle boundaries and reached our target. Now we prefer to be neutral and take profits. Another reason why prefer this stance is because we observe some warning signals in the Daily chart.

The Daily RSI is still not making higher highs. The RSI is forming a bearish divergence.This is the 2nd higher high in price that is not followed by a higher high in the RSI. This is a warning that at least a short-term top could be close. This is not a reversal signal. Trend remains bullish. Support is at $191-$192 the break out area. What was once resistance is now support.The material has been provided by InstaForex Company - www.instaforex.com