LTCUSD made a long-awaited breakout yesterday towards the upside on the daily chart. The price has been within a range for a long time on the daily chart. At some point of time, it seemed that LTCUSD might have come down. However, that did not happen. In fact, since the price made a breakout at the resistance level of that range, so again the buyers of LTCUSD are going to be in the driving seat.
Let us have a look at LTCUSD daily chart.
The Daily Chart
The level of 106.60 was the level of resistance which was to be broken. See how the price had a rejection from the level and came down. Then, it made the traders wait for a number of trading days. Neither the buyers nor the sellers had control over the market as far as the daily chart is concerned. Then, came that long, good-looking bullish candle, which made a breakout at 97.00 level, which is the neckline of a double bottom. Since there was another level 106.60 which is where the price had a rejection earlier on the daily chart, thus the buyers had to wait for a breakout at that level.
Let us have a look at the H4-LTCUSD chart as well.
The H4 Chart
The H4 chart shows that the price has made a breakout with a commanding H4 bullish candle. However, the bullish journey started with an inside bar bullish candle. This suggests that the price might come down a little for having a correction. Since the daily candle made a breakout as well, thus the price might not come all the way to the breakout level to have the correction. Nevertheless, H4 buyers might wait to get another support level here to go long to set their stop loss for a better risk and reward ratio.
For daily traders, it is an excellent signal to go long. There is enough space for the price to travel towards the North. This means for some days, buyers are going to have all the parties with LTCUSD.
Key points of the trade:
Stop Loss: Below 98.90
Take Profit: 128.30