Prospects for bitcoin and Lloyds Bank
22nd October 2018 09:35
by Alistair Strang from Trends and Targets
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He's no fan of the cryptocurrency, but technical analyst Alistair Strang plots the chart potentials. There's also a recap on Lloyds Bank ahead of third-quarter results on Thursday.
We still dislike bitcoin and it still illustrates savage drop potentials. But it remains – thus far – unwilling to drop to our expected 5,400 level. Or worse.
We can now refine the numbers a bit. The phoney coin, currently trading around 6,440, needs slop below 5,815 to commence the final slip to our postulated bottom of 5,409.
Very real danger now exists for further falls in the event such a level breaks, with 3,915 presenting itself as a solid trampoline level. Or at least, a trampoline level which might not be as phony as the product.
Shown on the chart, ultimate bottom of 1,500. The snag is it's got to actually start going down!
The last few months have seen bitcoin essentially flatline, with its usual share of fake surges – usually upward – as the price avoids derailing below 'red' on the chart. Instead, we can dwell on the blue line, the downtrend since its highs.
This blue line suggests bitcoin need only better 7,100 presently to suggest some gains are again on the table.
We've ample reason to distrust the product, our inclination now being to demand it actually trade above 7,190 before any rise dare be taken seriously. Above 7,190 and we're looking for an initial 8,360 and a bit of a stutter. If exceeded, secondary calculates at 9,200 sometime in the future.
As for the markets overall, we've been giving some fairly foul drop targets which included the retail banks.
Essentially, we suggest extreme caution – with everything – should Lloyds Banking Group ever find a reason to trade below 51p.
Source: Trends and Targets Past performance is not a guide to future performance
Alistair Strang has led high-profile and "top secret" software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know "how it worked" with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.
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