ForexMinute.com — After rising impressively during the 7th and 8th September trading session, Litecoin price slipped once again after encountering a corrective behavior near the range resistance level. The fall is visibly influenced by Bitcoin, whose own price action displayed a near-term bearish correction in over the last 24 hours.
In our previous analysis, we pointed a similar price action while watching two key parameter levels. We suggested that we would be getting in and out of our trades according to our intraday breakout strategy and draw as much as profit as we could from the range. Correspondingly, the price action offered us the same profitable opportunities. So with this said, what are the levels we are watching for today. Let’s have a look:
Litecoin 4H Chart
The 4H Litecoin chart above displays Litecoin in a slightly weaker bullish bias, for the price is only a little above its 50 and 100H SMAs and the RSI too has dipped below 50. The MACD indicator, while maintaining its overall positive bias, has slipped below its signal curve, indicating the ongoing selling scenario in the market.
Nonetheless, the levels we discussed yesterday are still intact, with 2.890 fiat serving as a strong in-term support and 3.080 fiat as a strong in-term resistance level.
We would definitely be watching price to retest support to attempt a bounce back towards the in-term resistance level. Not only such a corrective rally offers a decent profit making scenario, but also ensures a relatively less risk. Moving further, if Litecoin manages to extend the rally above the in-term resistance line, we would put a long towards 3.115 fiat. On this trade, our stop loss would be near 3.046 fiat to get us out of the market in case the price is pulled back once again.
Looking at the other way, a break below the in-term support would have us put a short towards 2.850, our medium-term downside target. On this trade, our stop loss would remain near 2.923 fiat.