Lisk price action bears some resemblance with NEM’s. Maybe it’s because they both operate as a service platform that’s for sure but price action wise, things appear thick for sellers. While we can interpret the recent move up two ways-either as a strong buy pressure or an over-extension, it will be price action that will make the ultimate decision meaning patience is an asset. There is no short cut to that.
Now, here’s how we going to plan our entries this week. While we often rely on the 4HR chart for entries, we shall shift our attention and make our deductions from the daily chart before fine tuning our entries.
In the weekly chart, we notice that bullish candlesticks are banding along the upper BB meaning buy momentum is strong. That is not hard to determine, check the secondary chart and note that stochastics are positive sloping and after last week bullish candlestick, their signals are diverging. The contention is where last week’s candlestick closed at. It looks over-stretched to the upside and that long upper wick is not helping because it hints of sell pressure.
Zooming in to the daily chart and it becomes clear that price action is in accumulation mode with immediate resistance found at $25.That level is the second Fibonacci extension level with the first level at around $17 acting as our support.
It won’t be hard now that we saw last week’s prices ending up with a long upper candlestick but if prices fail to close above $25 and the middle BB is breached, then chances of $17 being tested is high. Already the stochastics are negatively sloping and this is not positive for buyers.
In our entry chart, $25 and $17 remains as our key resistance and support lines. I will not recommend trade initiation since price action is in mid-range.
Stochastics are bearish but because of the range bound markets, the 20 period MA has been rendered useless until maybe after a break out.
All we have to do is wait until the support at $17 is broken-a break out trade-and price close below it.