Litecoin price has risen 0.53 percent to get even closer to the downward sloping resistance line discussed earlier in Short, But With a Tight Stop!. Now at $3.920, Litecoin presents very low-risk trading opportunities to both buyers and sellers. But, like always, following the stop-losses will be the key.
Since Litecoin is at the resistance level, a positive breakout can bring huge gains to the buyers at low risks (by putting a stop-loss, of course) and if it falls, the gains can be enormous while the risk is minimal.
Take a look at the technical considerations of the daily LTC-USD price chart.
Litecoin Chart Structure – Litecoin extends its lower top, lower bottom structure by another day. However, that may change soon as the Bitcoin market is giving positive signals.
Moving Average Convergence Divergence – Even as the MACD and the Histogram remain relatively unchanged, Signal Line has experienced a further drop in its value. While previously it was 0.0320, it is now 0.0123. The MACD and the Histogram have respective values of -0.0670 and -0.0793 respectively.
Momentum – The Momentum indicator is fast turning its head up, following the lead of Bitcoin (Read: Time to buy some). The latest value is -0.2107.
Money Flow Index – The MFI has approached oversold levels with a reading of 23.6254.
Relative Strength Index – The RSI is flat at 45.8398.
The positivity in the Bitcoin market may aid Litecoin as well. But, the traders should focus only on the resistance line. If the resistance is breached, initiate long positions for a primary target of $4.300 and a secondary target of $4.500, by placing a stop-loss just below the breached resistance. If not, then hold on to your short positions by placing a stop-loss just beyond the resistance.
Keep tracking the action in Bitcoin for further clues.
Since Litecoin is at the resistance level, a positive breakout […]