ForexMinute.com — Just like Bitcoin, its closest cryptocurrency Litecoin also faced some bearish action upon testing its current range resistance, failing to extend the previously prevailing upside momentum. The correction, however, lacked meat, for the price never managed to invalidate the range support lines as well and, therefore, went on trading inside the same range for the rest of the weekend.
As we enter another day of trading, we are seeing Litecoin in the midst of its new range, serving 4.759 fiat as its in-term resistance level and 4.363 fiat as its in-term support level. We will be watching these two levels while implementing our daily intraday breakout strategy. Have a look:
Litecoin 4H Chart
The 4H BTC-e chart above displays Litecoin in an intraday bullish bias, for the price is still trending above its 50, 100 and 200H SMAs and the 4H RSI is near 60, which represents a favorable purchasing area. The MACD indicator, on the other hand, has dipped a little below its signal curve, indicating the recent selling in the market but is yet maintaining its overall positive bias.
The rally, however bullish it may look, is still lagging in terms of volatility. We would therefore be placing our risk strategy accordingly to avoid any unannounced breakout signal. At first, we would be waiting for price to cross above the in-term resistance level to validate 4.922 fiat as our medium-term upside target. On this trade, our stop loss will be placed around 4.690 fiat to maintain our overall positive profile.
Looking at the other way around, failing to break the in-term resistance line would put us short towards the in-term support level. In case of extended retracement, our short will shift towards the primary downside target near 4.255 fiat. Our stop loss, in this case, would be near 4.432 fiat.