Lisk (LSK/USD) Analysis January 24, 2018
The over-valuation by week ending January 14 was corrected last week after that bearish engulfing pattern and a double bar bear candlestick confirmation.
Are you looking for fast-news, hot-tips and market analysis? Sign-up for the Invezz newsletter, today.
As it concluded, it effectively meant that $31 or the 3rd Fibonacci extension level was our ultimate resistance.
Already, bear follow through has seen price trending below $23 and in my opinion, bear pressure is strong and I’m placing my short term targets at around $12 and the middle BB.
Fact is, odds of this week’s candlestick oscillating within last week’s high lows is high and anyway, the dip and weekly range after last week’s close was above average. As observed from similar dips in the past, chances of this week being slow is high.
In the daily chart, notice that head and should pattern? The second shoulder was concluded on December 21 when that bearish candlestick was printed right at the middle BB which was also our immediate resistance line.
Typical with all head and shoulder pattern, the neckline is key and that flashes right with the double bar reversal pattern that formed on January 18 and 19. We already know our ultimate bear target is $12 or just below it at the middle BB as marked in the weekly chart therefore, if sellers break below $18, we can be confident of our targets being hit.
Just a remark. Do you notice the confluence? The 78.6% and $12 tango like they are married and this means in this over-all bull trend, this level is significant.
It’s clear that LSK prices are moving inside a descending wedge in the 4HR chart and like most alt coins, bears took over right at the 78.6% Fibonacci retracement levels. As such, we continue selling and as we observe price action at the minor support trend line.