ForexMinute.com — After consolidating sideways for a while, Litecoin once again gained upside momentum and broke a key resistance level to establish a medium-term bullish bias. The rally appeared soon after Bitcoin took a jump towards its October’s high, leaving us with a scenario of a possible correction.
However, as we zoomed out the Litecoin chart, we noticed a steady uptrend even since price established bottom near 2.70 fiat. This somewhat points to a longer term bullish aspects of the silver cryptocurrency, indicating how it can rise further until establishing a definite peak in near future.
Nonetheless, our focus will remain on the intraday aspects of the market, for it can act lazy and crazy without giving a clue. With this said, we have drawn our risk levels to indicate our in/out strategy for today. What are they? Let’s check out:
Litecoin 4H Chart
As you can see the 4H BTC-e chart above, our range levels have been revised due to recent uptrend. In the new range, we can see 3.077 fiat serving as in-term support and 3.146 fiat as in-term resistance level.
The prevailing bullish bias indicates that Litecoin will first attempt to cross above in-term resistance, making a clear way for us to put a long towards 3.195 fiat, our medium-term upside target. On this trade, we will make sure to place our stop loss somewhere near 3.136 fiat in case the correction appears at peak.
Looking the other way, a pullback from in-term resistance level would clearly have us put a short towards 3.108 fiat, our interim support line. It is only upon the invalidation of this level, we’ll enter a short towards towards in-term support, considering how the medium-term bullish momentum can influence the price to retest the current ceiling.