LSKUSD dominated by bears dragging the market lower throughout the day
LSK/US Dollar Index (LSKUSD) Technical Analysis Report for Oct 26, 2020 | by Techniquant Editorial Team
LSKUSD ended Monday at 1.08 tanking $0.05 (-4.42%). The bears were in full control today, moving the market lower throughout the whole session. Closing below Sunday's low at 1.10, the cryptocurrency confirmed its breakout through the previous session low after trading up to $0.02 below it intraday.
Daily Candlestick Chart (LSKUSD as at Oct 26, 2020):
Monday's trading range has been $0.06 (5.31%), that's above the last trading month's daily average range of $0.05. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for LSKUSD.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bearish Outside Bar. Despite a strong opening LSK/USD closed below the prior day's open and close, forming a bearish Engulfing Candle. Additionally, two candlestick patterns are matching today's price action, the Bearish Closing Marubozu and the Black Candle which are both known as bearish patterns. The last time a Bearish Closing Marubozu showed up on October 19th, LSKUSD lost -2.73% on the following trading day.
LSK closed back below the 20-day moving average at 1.11.
While the market is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Selling might accelerate should prices move below the nearby swing low at 1.06 where further sell stops could get activated. As prices are trading close to October's low at 1.04, downside momentum might speed up should Lisk mark new lows for the month.
Among the 13 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Outside Bar" stand out. Its common bearish interpretation has been confirmed for LSK/USD. Out of 50 times, LSKUSD closed lower 58.00% 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 70.00% with an average market move of 0.47%.