ForexMinute.com — Litecoin managed to escape from its lazy price movements, as it attempted a sharp rally towards the range resistance amid a strong buyout. However, the extended correction ended up being a farce, for the price got dumped right upon hitting its intraday peak.
Despite being disappointing, the price action offered enough good opportunities to take small profits from the market. The levels we drew in our previous analysis held pretty well, especially for long positions that offered a straight $1 profit.
Albeit the bull run, we still have Litecoin within the same range, tailing Bitcoin’s bearish movements to tease its prevailing support line once again. So with that said, the levels we discussed yesterday still stand tall for today’s intraday breakout strategy as well. Though, the dynamics have changed by an iota. What are they? Let’s check out.
Litecoin 4H Chart
The 4H BTC-e chart above is currently displaying a medium-term bearish bias, for the price has fallen back below the 50H SMA and the RSI, too, have withdrawn from the upside rally amid a correcting selling pressure. The MACD indicator is now lying near its normal line, with its head pointing south. All these technical indicators point to a moderate selling pressure in the market.
With said so, we would be first looking for price to test 3.949 fiat as our temporary support line. A run below this point will validate 3.718 fiat as our in-term support level, with downside risk towards 3.628 fiat. On this trade, we would place our stop loss near 3.756 fiat to exit the market on a small loss, if the bearish bias is invalidated.
Conversely, a bounce back from the said temporary line will bring 4.137 fiat back in sight as our in-term resistance level. A break above this level would further have us put a long towards 4.225 fiat, our medium-term upside bias. On this trade, our stop loss will be near 4.087 to maintain our positive reward profile.