LIT/USD - Head & Shoulder pattern. Can we break out?

1 Mar 2021

LIT has formed a large head and shoulder patter which is approaching its end. Will we break the neckline/support and fall or can we push higher?

I am mildly bullish, despite this formation because the overall market remain bullish. However another sharp fall in BTC or ETH price will likely take LIT below our current support, break the neckline and fall.

However, I find such a scenario unlikely. What is more likely is that we will finally break away from this diagonal resistance that has kept LIT down for a while. Why?

1. We made a 5 wave down from our ATH, so this correction should be over soon.
2. Bullish divergence on RSI
3. Overall market remain bullish - pray this does not change!
4. Positive cross on MACD which is likely to move on higher timeframes, if that happens we're gold.

It won't take long now for LIT to pick a direction, we should know by the end of the week were we stand. Good luck!

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