ForexMinute.com — It has been quite a lazy weekend for Litecoin, for its price kept on trading boringly within a very tight trading range. On the other hand, the negligibly variant price action opened no good trading opportunities, leaving us hold on to our bucks for an expected breakout.
In our previous analysis, we had anticipated such a sluggishness but, at the same time, had mentioned a few entry/exit levels to keep your eyes on in case of a breakout. As we enter another day of trading, we will notice that nothing has changed in term of technicalities and the levels we drew before uphold even for today. Let’s have a look at this chart first:
Litecoin 4H Chart
The 4H BTC-e chart displays Litecoin in a bearish bias, for the price is now trending below the 50, 100 and 200H SMAs and the RSI too has dipped inside the 40-45 region. The MACD indicator, meanwhile, is trending inside a negative bias. The volatility is also pretty low at this stage, forcing price to move flatly within strict parameters.
We are therefore excusing ourselves from placing any trade for now, but would like to remind you of the levels to watch for. As you can see, Litecoin is currently sighting 4.268 and 3.226 as their in-term resistance and support level. We will be looking towards price invalidating any of these levels to place our positions. Check out how:
In case Litecoin moves toward breaking the in-term resistance level near 4.268 — and eventually does so — then we will enter a long position towards 4.550 fiat, while sighting 4.992 fiat as our primary upside target. In this position, our stop loss will be place just below the in-term resistance line to ensure a timely exit in case of a bias reversal.
Conversely, a run towards the in-term support level will validate 2.680 fiat as our primary downside target. A short towards this level will have 3.302 fiat assigned as the stop loss.