In our last analysis on LTC/USD we noted that price had reached our bullish target and we preferred to stay neutral or with a very light bullish exposure as price was vulnerable to a sharp pull back. Before the pull back, price made a new high and turned sharply lower towards $180 earlier today.
LTC/USD back tested today the previous highs made early January around $180. So far price seems to respect support and a long lower tail in the Daily candlestick would be a sign of strength. Staying above $180 is crucial for the short-term trend. Price so far has successfully back test support and now we could another leg higher to new highs. If support however fails to hold, then we should expect a bigger pull back even towards $120-$110.
