ForexMinute.com — After facing volatile downside momentum in last few days, Litecoin briefly attempted a moderate upside correction after testing the current in-term support level near 1.562. A part of this correction is speculated to have influenced by Bitcoin’s rebound. Let’s check out how the current price action is opening near-term trading opportunities at press time.
Litecoin 4H Chart
The 4H BTC-e chart displays Litecoin in a strong bearish bias, where price is trending below the 50-, 100- and 200-H SMAs, while the 4H RSI is also below 40. What’s further proving the strong selling pressure is the MACD curve which is still trending below the normal line, but has taken a little leap against the saffron signal curve. This one indicator hints towards a weak upside bias in the market, based on which we have drawn a certain risk levels in the chart above.
At first, Litecoin is clearly testing 1.678 as its in-term resistance target, above which is some decent long opportunities towards the primary upside risk near 1.754 fiat. A break above both these levels can even validate 1.815 as the second upside target, that will ultimately bring the price in a medium-term bullish range. However, we would suggest you to place your stop loss somewhere below 1.678 to exit the market on time, in case the upside bias gets invalidated.
Conversely, if Litecoin manages to stay below the in-term resistance for too long, it would once again bring the in-term support near 1.562 back in sight. A break below this point will instantly validate 1.479 as its primary downside target, with further risks falling towards 1.366 fiat. In case you are wondering to take benefits from the short opportunities below 1.678, we would suggest to place the stop loss just near 1.690 to ensure a timely exit.