ForexMinute.com — The last few days could truly justify the term “to the moon” for Litecoin, for its price surged dramatically after trending sluggishly for weeks. The massive buyout, which we believed would soon transform into a dump, turned out to be in love with the new higher range. What we see now is Litecoin, defying all sort of magnetization it had towards Bitcoin, and opening some really attractive day trading opportunities. Let’s have a look:
Litecoin 4H Chart
The action is not settling in the Litecoin market, as can be seen in the 4H BTC-e chart above. In over the last 24 hours, the price has attempted to cross above its previous accidental highs between the range 1.911-1.923. A moderate selling pressure near the current upside risks however has kept the price from attempting further correction towards north — and it is now trending somewhere in a midway.
The technical indicators are extremely favorable for Litecoin, meanwhile. As you can see the chart above, the price is clearly trending above all the medium and long term SMA, while the 4H RSI is also flirting with the overbought threshold near 70. The MACD blue curve is also looking comfortable inside a positive territory. Overall, its bulls, bulls and bulls — as the title says.
But even in these times, one has to watch out for possible risk scenario to make a decent exit strategy with minimal loss. Litecoin market, however bullish it may look, is still prone to face some volatile actions — indicates the narrowing Bollinger Bands that may result into a breakout.
The way we see, the price is currently testing the in-term support level at 1.788 fiat, thereby opening some decent short opportunities to churn out an attractive profit. A further downside strength will further validate 1.751 as our primary downside target. However, make sure to set your stop loss somewhere above 1.811 to ensure a timely exit, in case the bias gets invalidated.
Conversely, getting a break above the in-term resistance level — near 1.911 — will simply open long opportunities towards the primary upside target near 1.965. if you are wondering to play out this trade, make sure to set your stop loss just below 1.911 to ensure a narrow escape.