LTCUSD produced a doji daily candle yesterday. After that long-awaited breakout, the price was very bullish on the day before yesterday. However, the daily candle did have a strong rejection from a level of resistance. Yesterday’s daily candle came out as a doji candle closing below the resistance level. This means another breakout may take place to attract more buyers to go long on LTCUSD.
Let us have a look at the Daily- LTCUSD chart.
The Daily LTCUSD Chart
The level of 121.65 was the level of resistance where the price had a rejection. Look at yesterday’s candle. It hardly has a body with rejection from both sides. Since the doji candle had a long rejection from the level of resistance, thus the level has to be breached with good momentum. All the equations suggest that most probably the daily chart is going to make an upside breakout soon. However, if the price comes a bit down from the level where it is now, then it may take longer to make the breakout. Let us find out the next support level from the H4 chart if the current one fails.
The H4 Chart
The support level where the price stands right now is a strong level of support. A number of H4 candles have been held by the level. It may help the price go towards the upside to make a breakout at the level of 121.65. However, if the current support level is breached by the H4 candles, then the next level of support would be 106.68. This will be a flip over support. The price had a rejection from this level earlier which is clearly evident here.
In a nutshell, LTCUSD traders shall wait only to go long. They must wait for a breakout to take place at 121.65 though. If it takes place from the current support level, then they get the opportunity to ride on the wave by tomorrow. On the other hand, if the current support level is breached, then the price may come down to the level of 106.68. That might make the buyers wait longer to get the breakout. Let us wait and see what actually happens next.