Lisk (LSK/USD) Analysis November 21, 2017
The path towards recovery is on at least that’s what the price chart is saying. Current LSK prices are trending at new highs after plunging 99% some few minutes after launching. That day, LSK printed an all-time highs of $447.
Are you looking for fast-news, hot-tips and market analysis? Sign-up for the Invezz newsletter, today.
Last week, LSK bulls pushed prices above the main resistance line at around $8.5 and closed at $12. This came coming shortly after prices had closed above the wedge in the weekly chart. Undoubtedly, that strong bullish candlestick was a mere confirmation of a bullish trend which had been set in motion after week ending November 12 reversal and Bull Run. Needless to say, by November 19 weekly close LSK had added $7 which is almost twice the average weekly range of this pair. It is also worthy to know that this bullish run was built from price action reversal at around the 61.8% Fibonacci retracement levels. Current prices are now trending above August highs.
In the daily chart, there was a stochastic sell signal printed at our potential sell zone marked by August highs of $8.3. The stochastic sell signal was accompanied by an over-extension to the upside after November 16 candlestick closed above the upper BB as an inverted hammer. Check out the long upper wick meaning sell pressure. However, prices continued to inch higher with that resistance at around $8.5 quickly turning support. If we invert our Fibonacci retracement and draw it from September October Hi-Lows then the extension level at 161.8% is our ideal profit level. That was hit on November 16 and 19. That might be the reason why we have those long lower wicks on those respective days and if prices fail to close above $10, the prices might temporarily retreat back towards support at $8.5.
In the 4HR chart, we shall only be taking longs. At the moment, there is a stochastic sell signal in place with LSK prices dropping from the double tops. Price action also indicates a bearish divergence pattern if you consider and compare stochastics relative to the recent price peaks whose close is flat and around $10. As such, if prices fail to close above November 19 highs at $10.3, then our buy zone will be at August and September highs between $7.8 and $8.4. LSK bulls should only buy when there is a stochastics buy signal turning from oversold territory ideally around the buy zone.