LTCUSD has been very bearish on the daily chart. After making a breakout at the up-trending trend line, the price has been heading towards the South with a good pace. Today’s price action has been bearish as well. Thus, LTCUSD traders may only look for going short on LTCUSD. Let us have a look at the Daily chart.
The Daily Chart
The chart shows that an up trending trend line was obeyed by the price a number of times. However, a daily candle made a breakout followed by another bearish daily candle confirming the breakout. Today’s intraday price action has been bearish, but there is no H1 breakout at the lowest low yet. Any H1 breakout at the lowest low would attract more sellers to go short on the pair as far as the daily chart is concerned.
On the other hand, the H4 traders would love to get a pullback to go short on the pair. This would allow them having a better risk and reward ratio. Let us have a look at the H4 chart to find out the level which may be held as the level of resistance at the time of pullback.
The H4 Chart
The level of 94.00 seems to be the potential level of resistance if a pullback takes place according to the H4 chart. An H4 bearish engulfing candle right at that level would be the signal for the sellers to go short.
The Bottom Line
The next level of support may come at the level of 70.65. This means there is enough space to grab pips for the sellers. The way things are going with LTCUSD on the daily and H4 chart, only the sellers are going to dominate in LTCUSD. Pullback and the daily or H4 bearish reversal candle are the two things that the sellers are going to look for to keep adding their short entries.