ForexMinute.com — The uptrend in the Litecoin market — ignited yesterday following a massive buyout in Bitcoin markets — entered its second day amidst a favorable bullish scenario. The price managed to establish an attractive intraday high near 3.315 fiat, just a few cents shy from September’s peak. However, the upside momentum has turned a little weaker in last few hours, following which the price has once again moved south — only by a little margin.
The rally, meanwhile, has brought our intraday strategy to a new range, where 3.015 fiat is serving as the current — and slightly weaker — in-term support, and September’s peak 3.145 fiat as in-term resistance level. We’ll be watching these two levels to draw our our risk strategy for today. Have a look:
Litecoin 4H Chart
As we can see the 4H BTC-e chart, Litecoin is clearly an attempting to extend its prevailing bearish correction, leading up to invalidating the in-term support we discussed above. Nevertheless, the price action remains choppy and couldn’t settle a specific parameter for now. We would therefore be waiting for price action to mature before putting any short trades.
With this said, we would wait for price to cross below 2.997 fiat before making any short trade. If it happens, then we would put a short towards 2.959 fiat while maintaining our stop loss near 2.967 fiat. We would not be placing any further trades as we expect price to take a volatile route where no near-term floors would be able to survive.
Meanwhile, our expectations for a near-term bullish correction is still intact, as we expect the current trend to be a mere bull flag that might soon influence yet another rally towards the in-term resistance line — near 3.145 fiat. Even if that happens, we would be cautious in our long trades due to the ongoing choppy action. We would first enter a long towards 3.072 fiat while keeping our stop loss near 3.000 fiat. In case the bullish action picks momentum, we would put a similar position towards the in-term resistance. On this trade, our stop loss would be placed near 3.055 fiat.