ForexMinute.com — After trending sideways within a strict trading range, Litecoin finally laid down its weapons to bears, as price crashed from the intraday high of 2.859 fiat to 2.699 — the range support we discussed in our previous analysis. A similar price action was also seen in the Bitcoin’s chart. However, the bearish impact there was much larger than that of Litecoin.
Our intraday breakout strategy meanwhile remained intact. The range we discussed held pretty well, with 2.877 fiat serving as the in-term resistance and 2.699 fiat as the in-term support level. As we prepare to head into the US session, we can expect price to remain within this range. Have a look at the chart to understand it further:
Litecoin 4H Chart
The 4H Litecoin chart above displays price is a bearish bias, for it is still trending below its 50, 100 and 200H SMAs. The 4H RSI, meanwhile, has slipped towards 30 earlier and is now awaiting corrections. The MACD indicator is also in the same condition, trending inside a negative bias. All these technical indicators are bearish, if not volatile. We might expect some bullish correction if the Bitcoin market responds better.
Nonetheless, we have already placed our risk levels at place to get in and out of trade without facing too much volatility. At first, we are expecting price to bounce back towards the temporary resistance level near 2.811 fiat. It certainly makes a good long opportunity with minimal risk. However, make sure to place your stop loss near the in-term support to avoid any major loss should the bearish bias extend.
A break below 2.699 fiat would have us put a short towards 2.673 fiat — our medium term downside target — while our stop loss will be placed just above the in-term support.
Looking at other way around, a run towards the in-term resistance level would influence us to put a long towards 2.822 fiat, our temporary resistance level.