Lisk (LSK/USD) Analysis November 16, 2017
USD bulls faced a monumental task of breaking below a three layer support zone in the weekly chart. The base of the bull flag, the main support trend line and the 20 period MA all combined to ensure prices don’t depreciate below $3 after October 30 lows of $3.6 was printed. After that and combined with Segwit 2X saga, LSK prices rocketed past the resistance trend line of the bull flag. Despite the late USD bull pressure, it still managed to close above it at $5.4. This week, LSK bulls are busy creating demand and as such, LSK has gained $2.3 after Sunday’s open. Furthermore, notice that the resistance trend line of the bull flag acted as support for this week's candlestick.
Are you looking for fast-news, hot-tips and market analysis? Sign-up for the Invezz newsletter, today.
LSK bulls are also in charge in the daily chart and judging from stochastics, the momentum is high. Price action broke above the main resistance level at $6, tested $7.5 which is around September’s high, corrected to the main resistance line at November 11. Price is currently moving higher and in the process completing a bull break out strategy. Since LSK bulls are in charge in both critical time frames, we shall only be taking long positions in the 4HR charts. Notice that with yesterday’s close above the upper BB, LSK was a little bit over valued and you can notice that with today’s long upper wicks along the upper BB at approximately at $7.5
In the 4HR chart, stochastics are overbought and price is definitely reacting at the resistance zone at around $7.8. Notice sellers are pushing prices lower with those long upper wicks in place. In the weekly chart we noticed that LSK has added $2.3 which is more than half of what it did last week when LSK price range was at $3.5. Because of this week early rally, main resistance zone around $7.5-$7.8 has been hit and LSK is reacting to the upper limit of the resistance zone. Bulls are urged to wait until a stochastics buy signal is formed at the oversold territory probably around 38.2% and 61.8% Fibonacci levels drawn from recent Hi-Los at $4.6 and $7.8. Those levels fall at $5.8 on the lower side and $6.5 on the upside.