Litecoin How to Trade

The price bounces from 70.00 resistance level. A bearish divergence gives a signal that we should be ready to see a short term downward movement. We have to watch closely for price action near the possible support zones. These zones can give us good levels for buying. The 1st support zone is formed buy SMA20 and 60.00 support level. If the price bounces from this zone, we'll see continuation of the uptrend. Long trades should be opened based on a confirmed reversal signal. If the market drops below the 1st zone, the 2nd support zone is more reliable and it's formed by SMA50, SMA100 and 55.00 support level. This zone is the most interesting for buying. If the market drops to these levels, we'll have to wait for price reversal confirmation from RSI, MACD histogram. Based on such confirmed reversal signal, we'll have to buy with the main profit target near 100.00 resistance level.