LTC/USD: technical analysis 07.03.2018

LTCUSD-2018-03-07

Current trend

On 4-hour chart, the instrument is falling along the lower line of the Bollinger Bands.

The price is approaching a strong support in the region of 187.50 (Murray [-2/8]).

Technical indicators reflect the active maintenance of the downward potential.

Bollinger Bands are diverging, reflecting the active development of the current trend.

MACD histogram is in the negative zone keeping a signal for the opening of sell positions.

Stochastic’s lines are pointed downwards.

The breakout of the level 187.50 will let the price fall to the level of 178.33.

There is a chance of an upward rebound from the level of 178.33.

If the price is set above the level of 193.75 (Murray [-1/8]), the upward trend can restore, and the instrument can retest the resistance level of 200.00 (Murray [0/8]).

Support and resistance

Support levels: 187.50, 178.33.

Resistance levels: 193.75, 200.00, 206.25.

Trading recommendations

Short positions can be opened below the level of 187.50 with the target at around 178.33 and stop loss 190.00.

Buy positions can be opened above the level of 193.75 with the target at around 200.00-206.25 and stop loss 190.50.