Lisk (LSK/USD) Analysis December 21, 2017
Lisk candlestick looks natural with upper and lower wicks in place. As it has been the case, buyers are pushing prices higher and rather that singing “bulls” every day, we going to take a different approach…suppose prices take a nose dive what are we going to do to mitigate losses?
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Of course we going to enter long with every dip and if you are a fan of the weekly chart, then you better hold this for the long term. Entering long right now in the weekly chart is inviting trouble-from a technical point of view-in my opinion. I don’t know about future prices but I’m almost certain that you will need a dip in the daily or 4HR chart to buy at least from what past prices are hinting.
Now, in the weekly chart we have these strong candlestick aligning along the upper BB but I want you to zoom in and notice the long upper wicks and where it closed last week. Lisk is slight overextended but buyers are seated in the cabin of this rocket-say that because the past two weeks candlesticks are vertical. Would prices come back to earth before inching back towards $22? <<<Lest I forget. Sorry. $22 is that second Fibonacci extension level.
We have decided to keep the high-low from where we base our extension fixed for consistency. That’s between Q1 and 3 2017 highs and lows>>>. Well, that depends on what happens in the lower time frames and that is why we have to look at our entry chart.
Now, to fine tune our entry in the 4HR chart I will use my favorite tools. The Fibonacci extension and retracement. Our ultimate support in the weekly chart based on our fixed high low is $22.
However, in the 4HR chart, our Fibonacci retracement and extension will be based on last week’s high lows. It gets interesting because prices reversed from last week’s high. That is trouble, big trouble if you are trying to scalp.
The ideal and where historical or “normal” reversals happens lies between 38.2% and 61.8%. Stochastics are mixed but they are at the overbought territory with bears driving prices lower. You see those lower highs relative to upper BB? That’s USD bulls right there.
The thing is this, if the middle BB is broken, then that’s good. We buy on dips ideally at around $10 and $12 as our retracement tool shows. Things change though and nothing is written on stone, if Lisk prices dip well and good, if there is a second wave of gas, our buy stop will be above December 18 highs of $19.5.