ForexMinute.com — Soon after Bitcoin recovered from its slugging flat price action ahead of the weekend, Litecoin also made a substantial yet unexpected recovery. The silver cryptocurrency, as we hadn’t anticipated in our previous analysis, finally saw some bullish actions after staying horizontal for almost a week and opened some decent trading opportunities on its way towards north.
As we enter another day of trading, we are provided with a complete new set of trading parameters, with 4.922 serving as the current in-term resistance and 4.256 as the current in-term support level. Our intraday strategy will be sketched based on these levels only. But before discussing them, let’s look at the chart:
Litecoin 4H Chart
The 4H BTC-e chart above displays Litecoin in a near-term bullish bias, for the price is trending above its 50, 100 and 200H SMAs and the 4H RSI is also trending near the overbought level around 70. The MACd indicator has also surged above its normal line, and is serving above its signal curve as well.
Despite the near-term bullish signals, Litecoin had also encountered some downside corrections after establishing 4.992 as its current in-term resistance level. With said so, we are still in the midst of a new range where actions can pursue any direction depending on the traders’ mood. We will be then drawing our intraday risk levels to ensure the maximum profit without inflicting losses in case of a bias reversal.
With price action looking flat for near-term, we will look for Litecoin to break above 4.992 fiat to validate 5.318 as our medium-term upside target. On this trade, our stop loss will be near 4.772 that will maintain our overall risk profile.
Conversely, a run towards 4.256 fiat would bring our short position towards the primary downside target near 4.128. On this trade, our stop loss will be near 4.351 fiat.