ForexMinute.com — After establishing an intraday low near 2.991 fiat yesterday, the Litecoin price formed a decent corrective wave, while bringing decent in-range trade opportunities for traders.
Over the past few days, the price action has averted downside risks on multiple occasions. A zoomed view of Litecoin charts show a steady uptrend, probably due to a similar price action in Bitcoin markets lately. This historical patterns have also influenced our intraday trades at some point, for we believe the current support levels to hold their positions well in coming days. Let’s have an elaborated look:
Litecoin 4H Chart
The 4H BTC-e chart above displays Litecoin in a neutral bias, for the price is now trending a way-too-above its key SMA curves. The 4H RSI, however, has lately dipped to near 50, indicating a neural buying/selling scenario. The MACD indicator, on the other hand, is maintaining its overall positive bias albeit trending below its signal curve.
We are current in the midst of a new trading range, where 3.077 fiat is serving as in-term resistance and 2.991 fiat is serving as in-term support level. Due to prevailing upside momentum, we will wait for price to cross above 3.077 fiat to validate 3.104 fiat as our medium-term upside target. In case the price attempts a reversal ahead of testing the in-term resistance line, our stop loss near 3.059 fiat.
Looking the other way, a pullback from resistance line would have us place a short position towards 3.017 fiat, our initial target. A further break and we’ll enter a similar position towards the in-term support line. On this trade, our stop loss will be maintained near 2.983 fiat to take us off trade on a very minimal loss.