LTC and EOS - Correctional upside after downward impulse expected

FXOpen

LTC/USD

From Mondays high when the price of Litecoin reached the projected high at $68.52 and ended its 5th wave, we have seen a decrease of 14.69% measured to the yesterdays low at $58.779. Since then we have seen a recovery to $63.7 but with the price currently being traded slightly lower at $62.24 level.

LTC and EOS - Correctional upside after downward impulse expected

On the hourly chart, you can see that price moved to the downside in a five-wave manner which indicated impulsiveness after a higher high has been made compared to the one on the 2nd of August. As we have most likely seen the completion of the 5th wave to the upside now either a corrective one to the downside has been starting or an impulsive higher degree one.

At the moment the price is retesting the 0.786 Fibonacci level for support and is came above and below it but is likely to find support there and continues increasing as the C wave from the corrective lower degree ABC correction would be expected to develop as the three-wave counter trend move. Its target would optimally be the 1 Fib level which is the significant horizontal level from the August 2nd’s high and the Monday support now broken to the downside. So after a retest for resistance is made another five-wave impulse to the downside would be anticipated to the 0.236 Fib level or even lower, depending on whether or not we are seeing the development of the ABC correction or another higher degree impulse.

If we are seeing a corrective ABC of the Minuette count projecting the length of the A wave on to the presumed ending point of the C wave at the 0.786 Fibonacci level we come up with the target of $54.8

EOS/USD

The price of EOS has been decreasing from Monday’s high at $3.922 to $3.27 which was a decrease of 16.31% but made a recovery since and is currently trading at around $3.4.

LTC and EOS - Correctional upside after downward impulse expected

Looking at the hourly chart, you can see that the price made another five-wave increase from the 12th of August which was the ending wave of the higher degree. The 4th wave correction was expected to continue for a bit longer but it had ended on the retest of the significant horizontal support zone just below the $3 mark.

As support has been found, most likely we have seen the development of the ABCDE correction after which the 5th wave of the higher degree count has been made which is why now we are likely seeing the development of the correctional movement of the same degree.

If this is true, then the price is currently undergoing a local ABC which is set to bring the price a bit higher but is ultimately leading to another five-wave impulse to the downside. The most significant support in line to the downside would be the mentioned horizontal support zone below the $3 mark and the Fibonacci retracement tool aligns its 0.236 level with the upper level to whom the interaction is being awaited.

 

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