ForexMinute.com — After displaying a steady upward momentum last week, Litecoin seems to be losing its fuel to push the uptrend further. It is now consolidating sideways within a decently widened range, bringing in enough long and short opportunities for traders. As we enter another day of trading, we would be watching whether price is respecting its previous support and resistance levels; and if not, then which price levels we would like to place our bets on. Let’s have a look:
Litecoin 4H Chart
The Litecoin 4H BTC-e chart above displays price above its 50, 100 and 200H SMA and the RSI is trending sideways near 60. The MACD blue curve is above the normal line, but has dipped below the saffron signal curve. A majority of these indicators indicate a neutral bias in the Litecoin market, looking for yet another breakout.
We will therefore be watching the levels that are currently holding the price inside them. On the upside, 3.136 seems like an ideal in-term resistance level, for it has held price multiple times from attempting any further northern levels in past few days. While on the downside, 2.694 has held the price pretty well during the previous downtrend and is hoping to be surrounded with a decent buying pressure.
As we continue to stay in the midst of these levels, our near-term short and long positions are pretty much restrictive — also ensuring a good profit out of this decent volatility. But in case of a breakout, which might just happen, we will be looking at the following levels on both the sides:
A run towards 3.136 will instantly validate December 2014’s sideways level 3.424 as the primary upside target. We would however recommend our readers to avoid entering long positions towards the primary targets unless the in-term resistance is broken. They are also advised to place their stop loss around 3.000 to avoid being chopped off in case of a bias reversal.
Similarly, a drop towards the in-term support line near 2.694 validates 2.496 as its primary downside target. We however will expect some really good buying pressure near the in-term area and would recommend traders to wait for a bounce back instead, so as to earn decent profits by placing long positions towards near-term upside levels. Even if you would want to play you cards on the primary level, we would recommend you to place your stop just above the in-term support line in case the bias gets invalidated.