Loading...
Traders Beware!
Warning!

Fraudulent websites posing to have a connection with JFD

Please be aware of fraudulent websites
posing as JFD's affiliates and/or counterparties

More information
by Charalambos Pissouros

Litecoin Trades in a Sideways Manner

LTC/USD traded somewhat higher on Thursday, after it hit support slightly below the 41.45 level, which has been acting as the lower boundary of the sideways range, the crypto has been trading within since June 11th. The upper end of that range is seen at around 44.75. With that in mind, as long as the price oscillates between those barriers, we prefer to stay sidelined.

What could open the door to a large round of declines may be a decisive dip below 41.45, the lower end of the range. Such a move would confirm a forthcoming lower low and may encourage the bears to shoot for the low of May 11th, at 39.05. If they are not willing to give up around that area, a break lower may trigger extensions towards the low of April 16th, at 37.40.

Turning our gaze to our short-term momentum studies, we see that the RSI stands below 50, while the MACD lies below both its zero and trigger lines. Both indicators detect negative momentum, but the RSI has turned up after it hit support slightly above 30. This enhances our choice to stay flat, as there is decent chance for Litecoin to trade for a while more within the sideways range before its traders decide through which side they should exit.

If the bulls prove stronger than the bears, and manage to push the action above 44.75, the range’s upper end, the gate towards the peak of June 10th, at 46.95, may be opened. A test and, eventually, a break of that hurdle could be the greenlight for climbing slightly higher, perhaps near the 47.75 zone, which provided strong resistance on June 4th and 5th.

Litecoin LTC/USD 4-hour chart technical analysis

Disclaimer:

The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. The Group of Companies of JFD, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD prohibits the duplication or publication without explicit approval.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 83% of retail investor accounts lose money when trading CFDs with the Company. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Please read the full Risk Disclosure.

Copyright 2020 JFD Group Ltd.

WEEKLY FINANCIAL NEWSLETTER
RIGHT INTO YOUR MAILBOX!
SUBSCRIBE TO JFD'S STRATEGIC REPORT

MORE MARKET INSIGHTS