Litecoin Horoscope for 1/10/11: Lazy Price Action

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ForexMinute.com — After establishing support near 2.911 fiat, the Litecoin price displayed some reasonable upside movements in last 24 hours. The price broke above the roof we discussed in our previous analysis, and further established an intraday peak level at 3.058 fiat. We had anticipated a slightly less volatile upsurge, due to which we managed to take comparatively little profit from our long trade towards 2.882 fiat.

In the latter part of the day, the Litecoin price began to slip after facing a nominal selling pressure at the peak. The corrective action once again brought price to the same range, with 3.028 fiat serving as in-term resistance, and 2/911 as in-term support level.

As we now enter another day of trading, the price is situated near the support line, and the upside action is relatively weaker than the last time. The flat action has kept us from placing any further trades. What will be the right time to enter the market? Let’s check out:

Litecoin 4H Chart

Litecoin Horoscope for 1/10/11: Lazy Price Action

The price is seemingly looking forward to test the 50H SMA, which coincides right near the in-term support line. The lack of upside volatility has further been hinting that Litecoin might move south in coming hours. It is therefore important to place risk assessment levels to maintain ideal exit strategies.

With this said, we would first be waiting for price to cross below 2.911 to validate 2.882 fiat as our medium-term upside target. A further downside action would have us to hold our trades tight, for the volatility can be too strong under such scenario. Meanwhile, on the said trade, we would maintain our stop loss near 2.925 fiat to exit the market on the first sign of reversal.

Looking the other way, a continuation in prevailing uptrend would have us put a long towards in-term resistance. A further break, and we’ll enter a similar position towards 3.046, our medium-term upside target. On this trade, our stop loss would be placed near 2.993 to maintain our overall reward profile.