LSKUSD closes below its opening price unable to hold early session gains
LSK/US Dollar Index (LSKUSD) Technical Analysis Report for Nov 22, 2020 | by Techniquant Editorial Team
LSKUSD ended Sunday at 1.23 losing $0.06 (-4.65%). Trading $0.04 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (LSKUSD as at Nov 22, 2020):
Sunday's trading range has been $0.11 (8.53%), that's slightly above the last trading month's daily average range of $0.09. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for LSKUSD.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
LSK/USD closed back below the 200-day moving average at 1.27.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and might now be heading back down towards the mean of the Bollinger Bands at 1.12. The last time this happened on August 17th, LSKUSD lost -5.03% on the following trading day.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close crossed below the upper Bollinger Band" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for LSK/USD. Out of 37 times, LSKUSD closed higher 67.57% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 56.76% with an average market move of 24.29%.