05.02.202112:03 Forex Analysis & Reviews: Altcoins: Litecoin confirmed reversal, purchases are relevant

The fight for the mirror support level of 146.04 on LTCUSD continued all night. Despite two repeated attempts to pierce this horizontal line with a shadow, the quotes managed to stay above it.

Now, as we can see on the four-hour chart, a new candle has risen above the consolidation boundaries, that confirms the probability of LTCUSD rising to the previous highs near the local resistance of 151.83 (dotted line).

It is worth noting that false breakouts of the horizontal 146.04 (punctures with shadows) confirm that the strength of this level remains. If the purchases are not yet open, it is not too late to get a good risk-reward ratio. The stop loss must be placed behind the longest shadow. However, the take profit will need to be placed near the level of 171.25 (optimistic, but possible), and as the price approaches the dotted resistance of 151.83, the stop order will need to be moved to breakeven or to plus.

As expected in yesterday's review, early purchases were made on the stop, it's time to re-enter Buy. But you should not delay making a decision, as the risk-profit ratio will be unprofitable further.

For those who are not ready to take a profit near 171.25 and move the stop, you can try to reduce the amount of risk by placing a stop order for the third shadow. Then the take profit can be set near the maximum values of the medium under the dotted resistance of 151.83.