ForexMinute.com — The uptrend in Litecoin market continued further with the invalidation of a key resistance level. In over the last 24 hours, the LTC/USD pair value increased by 1.5% under the influence of Bitcoin’s recent upside breakout. In the meantime, the upsurge brought some very attractive trading opportunities to the table.
In our previous analysis, we had anticipated to enter a long towards 2.921 fiat if the price breaks above the in-term resistance level. And as one can look, our trade turned out be profitable following the Litecoin’s rally. In the meantime, the range we had discussed yesterday was shifted to newer levels. Apparently, these are the same parameters we will be watching for our intraday breakout strategy. What are they? Let’s check out:
Litecoin 4H Chart
The range we are watching today has 2.882 fiat serving as the new in-term support, while the in-term resistance is leveled near 2.959 fiat. While watching these levels, we’ll also be checking for any signs of bearish correction.
On the technical front, the 4H BitFinex chart is definitely displaying a near-term bullish bias in the Litecoin market. The price, as you can see, has noticeably surged above its 50, 100 and 200H SMA, while the RSI too has surged above 60 — indicating a favorable buying scenario. The MACD indicator, on the other hand, had entered a positive bias, albeit is still vulnerable to downside corrections.
Keeping that in mind, we can expect price to move in either directions. At first, we will be hoping for it to test its in-term support level. In case it attempts a corrective slip, we would quickly enter a short towards 2.858 fiat, our medium-term downside target. A further correction would result in a similar trade but, this time, towards our primary downside target near 2.819 fiat. On all these trades, our stop loss will be maintained near 2.892 to help maintain our overall reward profile.
Looking the other way, if price manages to hold itself above the support level, then we would clearly enter a long towards 2.931 fiat, our temporary resistance level. It is only above this level, we’ll think of entering a long trade towards 2.959 fiat. We will although maintain our stop loss near 2.868 fiat to exit the trade in case the correction extends.