LSKUSD declines to lowest close since August 14th
LSK/US Dollar Index (LSKUSD) Technical Analysis Report for Oct 13, 2018
Moving lower for the 3rd day in a row, LSKUSD finished Saturday at 2.85 losing $0.04 (-1.38%) on high volume. Today's close at 2.85 marks the lowest recorded closing price since August 14th. Closing below Friday's low at 2.88, Lisk confirmed its breakout through the prior session low after trading up to $0.14 below it intraday.
Daily Candlestick Chart (LSKUSD as at Oct 13, 2018):
Saturday's trading range has been $0.20 (6.92%), that's far above the last trading month's daily average range of $0.12. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for LSKUSD.
Two candlestick patterns are matching today's price action, the Hammer which is known as bullish pattern and one bearish pattern, the Bearish Spinning Top. The last time a Hammer showed up on September 20th, LSKUSD gained 3.30% on the following trading day.
After trading down to 2.74 earlier during the day, the cryptocurrency bounced off the key technical support level at 2.77 (S1). The failure to close below the support could increase that levels significance as support going forward.
With another close below the lower Bollinger Band, prices are confirming their strong downward momentum in the short-term. A rally back into the Bollinger Band on the next trading day though might signal a potential change in momentum that could lead to a correction back up towards the center of the Bollinger Bands at 3.22.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
With prices trading close to this year's low at 2.55, downside momentum might accelerate should the market break out to new lows for the year.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Hammer" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for LSK/USD. Out of 8 times, LSKUSD closed lower 62.50% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 62.50% with an average market move of -5.97%.
With five out of the seven Major Cryptocurrencies closing higher today, the ones that stand out on the positive side are DASHUSD gaining 1.97% and ETHUSD closing 1.6% higher. On the flipside the worst performer has been XRPUSD closing -0.38% lower. Looking at the other Minor Cryptocurrencies, the winners of the day have been STEEMBTC surging 5.26% and SCBTC closing 4.08% higher. The worst performers of the day have been BCNUSD tanking -4.43% and BTGBTC closing -2.26% lower...read more