Litecoin – Entry Levels for Buying
Litecoin / Dollar BITSTAMP:LTCUSD
If you missed a trading opportunity based on a breakout signal above 50.00 level, now it’s not a good time for buying. The market moved too far from good entry levels. It will be better to wait for a retracement and buy based on reversals signal from the support zones at 50.00 or 40.00 levels. These zones are strong as the uptrend lines and support levels form them. Also SMAs with 50 and 100 periods, which are close to these zones, they give additional strength.
RSI is at the overbought zone and ADX line falls. These two signals can tell us about possible correction movement in the uptrend structure. So, it will be logical to join to the main trend after the correction using better levels for entry. Stop orders for buy trades should be placed below the support zones and profit targets at the resistance zone formed by 70.00 and 75.00 levels.
Source: TW DLavrov