Lisk (LSK/USD) Analysis January 16, 2018
The rally has been impressive and if you nicked this pair at around $5, then that’s a 5X increase in invested capital.
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Of course, the spiral up has been awesome but LSK prices are beginning to lose steam and last week’s candlestick following an over-extension by December 31 candlestick can be a hint. However, I’m not going to use lagging indicators for buy or sell recommendations.
I will be watching two key levels this week. The Fibonacci extension levels at $23 and $14. Apart from the middle BB, these two price tags are key support lines that if sellers get the better part of could mean cracks for this stellar LSK rally.
On the flip side, our resistance level will be at the 4.236 Fibonacci extension level at $37 assuming there is injection of demand today.
In the daily chart, the significant of the middle BB cannot be understated. The flexible support line has not being breached since the LSK drive begun and that goes back to early December 2017.
Nevertheless, despite the strong bullish pressure, we are beginning to see sellers driving prices lower and like the weekly chart, $23 is an important support line.
The middle BB will mean everything and from my deduction, any close below $23 and $14 will most likely be hit. However, before we draw conclusions, we should look at lower time frames to check if yesterday’s bear pressure will spill over and influence price action.
For sure, look at the injection of demand? It’s heart-warming for buyers. But, look at where that begun? That’s right at previous resistance and now support. The minor resistance trend line connecting January 9 and 13 highs might be cleared today and if they do, I recommend longs with stop losses at $26.