ForexMinute.com — After falling drastically over the weekend, the Litecoin price showed some in optimistic corrections in over the last 24 hours. The retracement, however, was weak and seemed more like a bear flag, a price action which normally occurs after a big dump.
With that said, our intraday breakout strategy is hugely focusing on price’s ability to hold itself above the new in-term support line near 3.712 fiat. In this case, price would be simply be targeting 3.964 fiat as its in-term resistance level. This is the new range we’ll focusing on today to make our trades. Have a look:
Litecoin 4H Chart
The 4H BTC-e chart is current displaying Litecoin in a strong bearish bias, for the price is trending a way too below the 50, 100 and 200H SMAs, and the 4H RSI, too, has slipped below 45 to indicate a strong selling pressure in the market. The MACD indicator, meanwhile, is maintaining its negative bias as well.
All these indicators could influence price to first attempt a run down towards the in-term support level. We will meanwhile be waiting for it to break below the said level to validate 3.628 fiat as our primary downside target. On this trade, our stop loss will be near 3.761 to help us escape the trade in case the downside momentum dries up.
Looking at the other way around, an attempt to break above the in-term resistance level would have us put a long towards 4.030 fiat as our medium-term upside target. A further correction could bring 4.137 fiat back in sight. On these trades, out stop loss will be near 3.931 fiat.