ForexMinute.com — After enjoying a successive rally in last few days, Litecoin was finally pulled back upon facing an expected selling pressure near the range resistance. The correction appeared clearly in the aftermath of Bitcoin’s fall, whose very own price failed to extend the previously prevailing bullish bias. As we enter another day of trading, let’s check the level we’ll be keeping our eyes on.
Litecoin 4H Chart
(click the link to view the chart)
The 4H BTC-e chart clearly displays Litecoin in a near-term bearish bias, for the price is neatly looking to break below the 50-H SMA. The 4H RSI, meanwhile, has also plummeted between 40 and 45. The MACD trendline, though in a positive territory, has dipped below the signal curve as well. The technical indicators overall indicate a nominal selling pressure in the market, which can be extended only when the in-term support around 1.729 is breached.
We therefore are clearly looking towards a break below the aforesaid level, something that will validate 1.666 as the primary downside target. Despite being an attractive short position, traders are still recommend to place their stop loss near 1.781 to ensure a timely exit in case of bias reversal.
Looking at the other way around, 1.800 looks like an attractive long position to trade once the price makes a reversal from the in-term support line. The upside pressure however will remain to be near 1.819 fiat.