ForexMinute.com — Litecoin continues to respect its newly formed trading parameters. The silver coin, which has been consolidating sideways since the last few days, is still looking for a breakout to come out of a near-term bias conflict. Nevertheless, the price fluctuations between moderately widened in-term support and resistance levels are still opening some decent trading opportunities for traders.
As we enter another day of trading, let’s check out these levels further.
Litecoin 4H Chart
(click on the link to view the 4H BTC-e chart)
The 4H BTC-e chart displays price trending above the 200, 100 and 50H trendlines, while the RSI is comfortably trending between 52 and 55 from last few days. The MACD blue curve is also trending inside a positive territory, while being aligned to its signal curve. These technical indicators displays Litecoin in a slightly bullish bias. Though with the extended stability, we can safely call it a neutral bias for now — awaiting breakouts.
In last 24 hours, we have seen price action forming between a very strong in-term resistance near 1.819 and a temporary support level near 1.742. We can therefore safely assume price to respect these levels if it is in mood to extend its stability further. The small fluctuations between 1.742-1.819 range undoubtedly opens some decent trading opportunities for both long and short positions.
We also recommend to look out a little further in case a small breakout appears in either direction. A break above 1.819 is hinting to validate 1.851 as the primary upside target. We would be looking to place a long towards the aforesaid peak level in case the in-term resistance is breached. However to keep ourselves safe, we will be placing a stop loss below near 1.789 to ensure a timely exit in case of a bias reversal.
Looking the other way around, a run below 1.742 would instantly validate 1.729 as the in-term support level. There is indeed a very strong buying pressure in between these levels — as can be seen in the link above. But even if the price breaks the in-term line, the next target to come in sight would be 1.666. We would therefore recommend to place your stop loss near 1.742.