Lisk failed to hold the $12.15 resistance, however, we have a symmetrical triangle formation (PURPLE TRIANGLE) and we will probably see price action as we approach the end of this formation. Until we reach the end of this formation (Around the 12th of May), we will probably see some consolidation and small price movement and I am leaning towards the price breaking upwards by the end of this symmetrical triangle!
I am extremely bullish on LISK from a fundamental POV but we have to understand that the current market conditions, specifically BTC, have a deep influence on price movement of all alts in general. For now, everything looks good and I expect the market to continue its bullish price movement in the coming weeks.
ENTRY:
You can either make your entry at $10-$11.50 OR you can wait for a bullish confirmation once we break the upper symmetrical formation (downtrend line)
I personally have no stop loss set on LISK as I love LISK and I am investing in it rather than trading as I believe it has great long-term potential, but I do take profits on the way up in order to have collateral to buy any significant dips, but will never sell all my position.. I have no intention to get stopped out in any sudden flash crash that could instantly liquidate my position. But if you are in this for a quick trade, you can consider the symmetrical triangle's below line as your stop loss/entry indicators.
Good luck and only invest $$ that you can afford to lose. I am not a professional trader nor adviser and you should only invest/trade based on your own due diligence.
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Excuse me. In the first sentence I meant the $12.61 resistance instead of $12.15
Unfortunately TradingView only gives you the the privilege to EDIT any mistake/typo within 15 minutes of posting the TA.
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Just touched our uptrend line in our symmetrical triangle formation ~$10.60 which in my opinion is a good entry!
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Taking a small profit with a very small position of my LISK by selling at $14.25 and setting up a buy order at around $12. What if it never goes down to $12 again? Profit is profit and you never lose by taking it. I like to be in a position where I have hedge.
Lisk is looking good. Let's see where it will head by the end of this formation :)
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Still in our symmetrical triangle formation. Keep a close eye on Lisk in the coming couple of days as I expect significant price movement.
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We got a bearish confirmation as price dropped below our symmetrical triangle's uptrend line at $11.90
That "symetrical triangle" is actually a BULLISH PENNANT. Watch out.
JoeFares
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@fakhan, A symmetrical triangle chart pattern represents a period of consolidation before the price is forced to breakout or breakdown and is not necessarily a bullish pennant/formation. A breakdown from the lower trend line marks the start of a new bearish trend, while a breakout from the upper trend line indicates the start of a new bullish trend. The pattern is also known as a wedge chart pattern.
The price target for a breakout or breakdown from a symmetrical triangle is equal to the distance from the high and low of the earliest part of the pattern applied to the breakout price point. For example, a symmetrical triangle pattern might start at a low of $10.00 and move up to $15.00 before the price range narrows over time. A breakout from $12.00 would imply a price target of $17.00 (15 - 10 = 5 + 12 = 17).
In our case here, a breakout from $12.60 would imply to a breakout up to $18.90 or dump to $6.30!
I personally expect a bull run for Lisk due to the following reasons:
- Lisk experienced a tough correction already.
- Lisk is a very solid project with continued development and hard work.
- Lisk will be releasing their SDK soon in the coming months
- Lisk will be releasing their Core v1.0 soon in the coming weeks (hopefully)
- We are in a bullish market.
@ErcanGoktas, No update needed as we are still in our symmetrical triangle formation. You can either buy now ~$10.60 as it it looks like a good entry to me! But if you don't like risks, you can buy once we get a bullish confirmation within the next 2 weeks. Keep in mind that we can still get a bearish confirmation, so it's your call when you would like to enter.
unhreal
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Hi, sorry for such a dumb question, I'm super new to TA, but I was just wondering how you figured out 12.15 as a resistance? If looking at 4hr charts wouldnt $14 be resistance?
Thank you for the analysis.
JoeFares
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A support level is a level where the price tends to find support as it falls. This means that the price is more likely to "bounce" off this level rather than break through it. However, once the price has breached this level, by an amount exceeding some noise, it is likely to continue falling until meeting another support level.
A resistance level is the opposite of a support level. It is where the price tends to find resistance as it rises. Again, this means that the price is more likely to "bounce" off this level rather than break through it. However, once the price has breached this level, by an amount exceeding some noise, it is likely to continue rising until meeting another resistance level.
Supports/Resistances can be noticed on the chart where the price either has been consolidating at for a significant amount and can also be obtained thru Fibonacci retracements. Once resistances are broken, they become support levels.