ForexMinute.com — After slipping briefly ahead of the weekend, the Litecoin price made an impressive recovery in past 48 hours. The Bitcoin’s sudden upward action influenced its silver counterpart to jump from 2.507 fiat to the intraday peak near 3.056 fiat — marking a 10% surge. Since establishing the peak, the price action has now calmed down relatively.
On the other hand, our intraday breakout levels have stood proud as we were able to take out a decent profit from our long position towards 3.049 (look out our previous analysis). Since then, we have now revised our range as price continues to search for new in-term floors. Have a look:
Litecoin 4H Chart
The 4H BTC-e chart above displays Litecoin in a relatively bullish scenario. The price, as you can see, has surged above the 50 and 100H SMAs, while the RSI too has rocketed above 60 — indicating a favorable buying opportunity in the market. The MACD indicator, meanwhile, has also jumped above its normal and signal indicators.
The range we are watching amid these near-term bullish bias has 3.080 fiat serving as in-term resistance and 2.890 fiat as in-term support level. These levels are offering good range trade opportunities for now. We would also be hoping to see some breakout attempts as price tests these levels harshly.
At first, we will be looking at Litecoin to break above the in-term resistance level to establish 3.207 fiat as our primary upside target. A further upside action would bring 3.303 fiat in sight. On these trades meanwhile, we would place our stop loss near 3.034 to plan our exit in case the uptrend is broken and reversed.
Looking at the other way around, a breakdown towards the in-term support level would have us put short towards our medium-term downside target — at 2.838 fiat. On this trade, our stop loss would be maintained near 2.921 fiat.