ForexMinute.com — Like Bitcoin, Litecoin too was waiting for a breakout to invalidate the previously prevailing congested pattern. In last 24 hours, there seems to be some movements that widened up the Bollinger Bands a bit; but even now, the market is unable to establish any particular bias. It however is providing enough trading opportunities for the day traders, with its limitedly volatile price movements. Let’s have a look:
Litecoin 4H Chart
The 4H BTC-e chart above clearly shows us a neutral scenario in the market, even though the price has occasionally been dumped below the oversold threshold (the lower Bollinger Band curve). In the meantime, Litecoin price is currently situated between the 50-H and 100-H SMA, testing both levels as its upside and downside risks, respectively. The 4H RSI however is near 50 — just shy of establishing a neutral bias. The MACD blue curve is also looking to be aligned with the normal line.
From the look of it, the Litecoin price is hinting towards retesting 1.452 as its in-term resistance level. In case the level is broken, the pressure would simply fall on 1.457, the temporary channel resistance. It is therefore advisable to place your long positions towards 1.452 if you are situated anywhere below it. However, if the upside bias invalidates, you are suggested to place your stop losses near 1.449 to ensure a timely exit with minimal loss. This will also open up some short opportunities towards 1.442, the temporary in-term support, with target risk towards 1.438 fiat. In case price manages to stay above the aforementioned levels, long opportunities towards 1.452 will reemerge.