ForexMinute.com — After establishing an intraday low near 2.911 fiat, Litecoin price made some mild bullish corrections. It is evident that the buying pressure near the new floor was reasonable, which eventually brought us to the prevailing range.
In our previous analysis, we had anticipated something different. We hopes for Litecoin to continue its bearish action once the price crosses below the in-term support level. Our analysis was based on the Litecoin’s constant tailing of Bitcoin price movements. And as its golden counterpart was acting all bearish, we expected Litecoin to do the same.
But as it turned out, Litecoin has defied the downside momentum — at least, temporarily. Due to this new update, we have already revised our parameters for today’s analysis. What are they? Let’s check out:
Litecoin 4H Chart
As you can see the 4H BTC-e chart, we are currently in the midst of our revised range, in which 2.911 fiat is serving as the in-term support, and 3.026 fiat as the in-term resistance level. But due to choppiness in the market, these levels are prone to be violated at some occasions. Keeping that in mind, we have already place our risk levels to avoid any sort of volatility.
At first, we are hoping for price to retest the in-term support line, for the upward action seems to have been weakened at press time. In case price takes another dip towards the said level, it would validate 2.882 fiat as our medium-term downside target. On this trade, our stop loss would be maintained near 2.923 fiat.
Looking the other way, an extension in the prevailing corrective action would bring in-term resistance in sight. But it is possible of price to take another dip before reaching 3.026 fiat as well. So we would prefer to wait for price to cross above 2.996 fiat to place any upside trades.
In case the price crossed above the said levels, it will validate 3.073 fiat as our primary upside target. Though, we would also maintain our stop loss near 3.008 fiat to exit the trade on the first sign of a bias reversal.