After a bullish divergence between price and the RSI in the 1H chart, litecoin found support during the June 1st session at 1.58 and rebounded.
In the 1H chart we can see that price has rallied back above the earlier pivot of 1.68, but only barely. It needs to clear 1.70 during the 6/2 session with the 1H RSI above 60, in order to develop a convincing bullish reversal picture,. Then, we would still have resistance around 1.75, where ltcusd will likely be challenged by a falling trendline and the 200-hour SMA. Above that, we are likely to be in bullish continuation, especially if the 1H RSI is able to climb back above 70.
In the 4H chart, we can see that price has retreated from the 1.90-1.94 highs. The 4H RSI showed a loss of the prevailing bullish momentum, and even suggests initiation of bearish momentum. Price has falling below the 50- and 100-period SMAs. Still, we can see that price is above a previous consolidation resistance at 1.50, and above the 200-period SMA. Therefore, the mode of this market is neutral-bullish.
From the perspective in the 4H chart, a break above 1.75 would confirm the bullish outlook from the bullish breakout a couple of weeks ago. Therefore, above 1.75, litecoin would likely test that 1.90-1.94 resistance with risk of breaking higher.
While the 1H and 4H charts look bullish to neutral, the daily chart still looks bearish to neutral because of the prevailing downtrend in 2014.
We can see that price is essentially in a range between 1.00 and 2.45 in 2015. A break above 1.95 would thus put pressure on the 2.45 resistance. A break above 2.45 would then complete a price bottom, with the 2015-high at 2.75 up to the 3.00 as the first target. If price can then hold above 2.00 after a subsequent pullback, we should see upside risk for more or less the second half of the year.
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