ForexMinute.com — The price action in Litecoin market has been pretty bullish in last 24 hours. However, it counts to be only the fraction of what we have noticed in Bitcoin, the market which usually influences Litecoin’s price direction. Nevertheless, the silver cryptocurrency offered enough trading opportunities during its choppier price action.
The levels we discussed in our previous analysis, meanwhile, held pretty well and we were able to draw out decent profits from our range trades. As we now enter another day, the price action has slightly moved towards bears following the selling opportunities near intraday highs. With this said, what is the strategy we are looking to execute in this corrective session. Let’s check out:
Litecoin 4H Chart
As you can see the 4H BTC-e chart above, we are now in the midst of the same old range, where 3.077 fiat is serving as in-term support and 3.140 fiat as in-term resistance level. For a brief moment, the corrective action had breached in-term support line, but was quickly balanced with an equivalent buying scenario. The lower low formed there was our medium-term downside target from yesterday’s analysis.
We, are, therefore again the same range. At first, we will be expecting price to regain its upside momentum and test 3.140 fiat. This movement bring us a good long opportunity. But make sure to keep your stop loss placed somewhere near 3.083 fiat to exit the market in case of a bearish extension. In case the price breaks above in-term resistance, we will put a long trade towards 3.200, our medium-term upside target.
Looking the other way, an extended corrective phase will have us wait for price to invalidate in-term support. In case the price manages to float above the said level, we’ll enter a long position towards 3.140 fiat. In case it doesn’t, we will enter a quick short towards intraday low near 3.060 fiat by keeping our stop near 3.088 fiat.