Forex Minute Trade Plan – Altcoin 24/04/2014

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Forex Minute Trade Plan - Altcoin 24/04/2014

Forex Minute Trade Plan - Altcoin 24/04/2014

In terms of actual event driven volatility, the altcoin space has been relatively quiet this week. On Thursday however, a Bloomberg report that litecoin is increasingly becoming the cryptocoin of choice in the digital currency space looks to have sparked some intraday volatility in the LTCUSD. Here are the levels to watch.

First, let’s take a quick look at how we got to where we are today.

From April 19 highs just shy of 12.991 the LTCUSD has trended downwards in a sloping channel for the whole of this week. The pair found its last swing support at 11.648 early on Thursday morning, and rocketed to channel resistance at 12.008 within the space of 45 minutes. A subsequent close above channel resistance offers up a bullish intraday technical bias, supported by the positive fundamental bias that the Bloomberg report has initiated. A strong rally preceded a small correction during which the LTCUSD retested aforementioned resistance as support; it held, and the pair now sits just shy of key resistance at 12.445.

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Expect something of a small correction, with a failed retest of 12.215 support hinting at further intraday strength as before the close. If the retest does fail, look for an initial target of April 21 resistance at 12.681. A close above this level would validate a secondary upside target of weekly highs at 12.991.

There is, of course, the possibility that the effects of the Bloomberg report will prove temporary, and the LTCUSD could reverse to a resumption of its longer term downtrend. However unlikely (especially from an intraday perspective), the volatility calls for tight risk management to ensure you do not get caught on the wrong end of a falling market.

The aforementioned levels offer up nice positions to place tight stops, and in terms of targets, take profit off the table as the upside levels hit to lock in your daily gains.

To contact the reporter of this story; Samuel Rae at Samuel@forexminute.com