ForexMinute.com — Following the Bitcoin’s downside momentum, Litecoin, too, slipped heavily during the weekend trading sessions. However, with some luck, the bearish movement slowed down upon establishing a new low near 3.853. Testing this level, the price attempted a bullish correction and is now hoping to extend it further without slipping back into the bearish channel.
Litecoin 4H Chart
As you can see the 4H BTC-e chart, Litecoin is clearly inside a bearish bias, for its price is now below its 50, 100 and 200H SMAs, while the 4H RSI has dipped to near 48. The MACD indicator, meanwhile, is maintaining its negative bias but has yet risen above its signal curve, showing some near-term bullish correction.
At this point of time, Litecoin seems to be in a corrective mood. We are in midst of a newly founded range, with 4.243 fiat serving as the in-term resistance and 3.853 fiat as the in-term support level. Our today’s intraday breakout strategy would be eyeing on these levels to ensure minimum risk and maximum profits.
At first, we would be looking to break above the in-term resistance level to validate 4.393 fiat as our primary upside target. On this trade, our stop loss would be near 4.194 fiat to help us get out of the market in case of a bias reversal.
Conversely, a break below the in-term support level would have us put short towards 3.706 fiat. On this trade, our risk management perspective would influence us to place our stop loss near 3.923 fiat.