Litecoin is a market which has a great potential for an upward movement and it is on good levels for buying in long term. If we look at the daily chart of this altcoin we can see that the price is between the top border of the descending channel and the main uptrend line from bottom. RSI confirms price reversal from the uptrend line and we should expect for further upward movement. Also we should note that the main trend is upward and it’s logical to search for entry levels for buying only.
Long trades must be opened based on a breakout signal. Estimated entry level is above 43.80 and it’s the local swing high on lower time frames. You can use pending orders or buy from the market when the price breaks the channel. Stop orders must be placed below 38.00 level. It’s the local swing low based on the daily chart. We can spot our 1st profit target at 50.00 resistance level and if the market breaks above this zone, the 2nd profit target should be at 55.00 level. Also it’s possible to fix a part of profit near these resistance levels and leave the rest buy position for long run. Recommended trading volume for this market is 5%-10% from your deposit and it depends on how many markets you trade.
Buy: above 43.80
Profit Targets: 50.00 and 55.00
The trading signal is based on Poloniex chart.