LTCUSD made an interesting move yesterday. On the daily chart, the price challenged a very significant level of support, but at last, could not breach through. However, the daily candle closed with a strong bearish tone with a tiny downside spike.
Let us have a look at the chart and find out how the overall picture looks like on the daily chart.
The Daily Chart
Look at yesterday’s candle. A strong bearish candle closed at the level which is a flip over support. The spike is tiny which indicates that sellers were confident enough up to the closing session of yesterday’s daily candle. After all these selling efforts by the sellers, the level of 98.05 was not breached though. This is a key level of support and might play a significant role here. However, the level was not breached yesterday; it does not mean that it may not be breached today. If it is breached, the price will be in a long correction. That would spoil the party of LTCUSD buyers. Thus, today’s daily candle is going to play a vital role among LTCUSD traders.
Let us have a look at the H4 chart to find out how the equations stand.
The H4 Chart
The support and resistance of both levels are adjusted a little. The level of 98.85 seems to be the support here. The price had a bounce twice on the level. It seems that it may end up producing a double top here. If the neckline of the double top is breached, then the price would head towards the North. The level of 120.65 would be the level to watch out for the buyers. They would be eagerly looking to get a breakout on the level to go long again on the pair. However, if the price makes a breakout at the support level, then surely H4-LTCUSD sellers are going to go short on the pair, which would eventually make a breakout on the daily support level as well.
The Bottom Line
As we see that the equations are simple here. A breakout towards the South, it would be a long correction on the daily chart or may even change the daily trend. A breakout towards the North, buyers are going to go long again and push the price further North. Either way, the buyers will have to wait here.