ForexMinute.com — After exploding throughout the weekend and Monday, Litecoin price has finally attempted some downside corrections. The downward rally however is weak, because of which price is still holding above the support levels we discussed in our previous analysis. As we enter another day of trading, we would almost be watching the same levels to place our bets on, with little changes here and there. Have a look:
Litecoin 4H Chart
The 4H BTC-e chart shows Litecoin in a strong bullish bias, despite the recent correction phase. The price is still trending above its 50, 100 and 200H SMA and the RSI is trending horizontally near the overbought threshold line near 70. The MACD indicator is still maintaining the positive bias, and is trending above its signal curve.
As we can also notice in the chart above, Litecoin has established an intraday high near 5.561, a level we’ll be treating today as our in-term resistance line. Conversely, the in-term support line will continue to be around 4.687. We are expecting price to stay between this range, while awaiting breakout on either side.
To say the least, we will first be placing our long position toward 5.400 fiat, without considering the in-term resistance line much. The reason for this trade is the untrustworthy volatility that can always push price back inside the bearish channels, once the Greek crisis hype is over. We would therefore be placing our position within narrow ranges. Coming back to our position, we will further be placing our stop loss near 5.236 to exit the market in case of a bias reversal.
Conversely, a run towards the in-term support line is possible, and easy, amid present volatile conditions. We would therefore be entering our short position towards the primary downside target near 4.687 once Litecoin breaches the 5.1-mark. Here our stop loss will be around 5.341.