LTCUSD is about to make a downside breakout on the daily chart. Yesterday’s daily candle closed below the support level, but it had a strong rejection from the South. Today’s intraday price action has been bearish too. However, there is another strong level of support. Thus, the sellers have kept their patience to go short on the pair.
Let us have a look at the daily-LTCUSD chart.
The Daily Chart
The level of 77.05 was a level of support on the daily chart. Yesterday’s intraday price breached through the level. However, the daily candle closed with a long spike. This is a pinbar. However, since it closed below the support level, today’s intraday price action has been bearish. The daily traders have to keep their patience since there is a strong level of weekly support at 70.05 area. This does not allow them having a good risk and reward ratio. Thus, it would be wise for them to wait and make a breakout at the level of 70.05 to go short in LTCUSD.
Let us now have a look at the H4-LTCUSD chart.
The H4 Chart
The H4 chart shows that the breakout level has become resistance. After producing an H4 bearish engulfing candle, two more H4 bearish candles were produced. The price has been heading towards the South but not with good selling pressure. Nevertheless, as things stand with LTCUSD, it seems that the H4 traders may want to hold their positions up to the level of 70.05.
The Bottom Line
The H4 traders may look for selling opportunities and eventually it would make today’s daily candle come out as a good-looking bearish candle. If that happens, the daily sellers may start going short below the level of weekly support. By combining the H4 and daily charts’ price action, it is explicit that the sellers have been dominating in LTCUSD.