ForexMinute.com — After declining throughout yesterday, Litecoin price once again attempted a sharp bounce back. The price action seems to have been influenced by Bitcoin, whose very own price attempted a volatile upside action in over the last 24 hours. Speaking about its silver counterpart, the correction seems to be a little weak and is currently waiting to jump above the intraday peak point near 2.956 fiat.
As we now enter into another day of trading, we too are watching for price to cross above the said peak, so as to validate the parameters we discussed in our previous analysis. Have a look at the chart to know further about it:
Litecoin 4H Chart
The range we discussed still holds to be true for current Litecoin price action. As you can see the 4H BTC-e chart above, the price is still trending in the midst of in-term resistance near 3.080 fiat, and in-term support near 2.877 fiat. These are the primary levels we are watching today for our intraday breakout strategy.
At first, we will be looking for price to break above its intraday peak level — as discussed above. If it doesn’t, then we would be maintaining a short position towards the in-term support level, while keeping our stop loss just a little above 2.960 fiat. A similar magnetism towards the in-term support could be seen once price tests the in-term resistance level. In this case, our short positions would be placed towards 2.960 fiat only.
Looking at upside levels, a run towards 3.043 fiat would once again bring 3.080 fiat in sight — an attractive long position, indeed. A further break above the latter would have us put our long towards 3.151 fiat, our medium-term upside target. On this trade, our stop loss would be maintained near 3.018 fiat to get us out of the market in case the bias is invalidated.