Lisk Is Has Taken 424% Bullish Move | Should We Buy Here?Since Dec 2018 the Lisk started forming the bullish Butterfly pattern on 2 week chart and after final leg was retraced between 1.27 to 1.618 Fibonacci and this was the final potential reversal zone of this pattern from where the priceline was supposed to take bullish divergence at any time and at last in Jan 2020 the price action gave a new year surprise to its holders and traders and took a very powerful bullish divergence and gave more than 424% gains from lowest $0.29 to recent highest $1.52 and now the price action is in 0382 to 0.786 Fibonacci projection of A to D leg of this bullish Butterfly pattern.
The Oscillators And Idicators:
On long term month chart If we see the oscillators and indicators then it can be clearly seen the moving average convergence divergence (MACD) is turned strong bullish as the histogram is appeared in green indicating that the momentum has been completely shifted in favor of bulls and moving averages of MACD has also given bull cross in the meanwhile the stochastic has given bull cross from oversold zone and relative strength index (RSI) is still in oversold zone its mean that RSI has still very vast capacity to move up.
An Alligator Mouth A Very Strong Bullish Signal:
If we see the move of simple moving averages with time period of 25, 50, 100 and 200 then 25 SMA has crossed up all moving averages and after that the 50 SMA has crossed up the 100 SMA and soon it will cross up the 200 SMA and this golden cross can produce a very strong wave and once we have the order of moving averages from down to top as below:
200 SMA then 100 SMA then 50 SMA and then 25 SMA above all
Then a complete alligator’s mouth will be opened then the most powerful rally can be started.
When the alligator’s mouth was opened in May 2019 it leaded the price upto $4.6.
How Can We Enter In This Bullish Move?
At this time the price action is very closed to the price level $1.67 where it could not resist in Jul 2019 and dropped more than 73%.
But if we see the visible range of complete price action of Lisk then we are far below than the POC of volume profile and traders interest can be seen upto $2.35 very strong and every candle stick is being closed above exponential moving averages 10 and 20.
In my opinion if anyone wants to enter in this bullish trend or interested in buying Lisk here then he/she should wait until the price action completely hits the $1.67 resistance and breakout this resistance coz sofar a correction move is due since it has taken bullish divergence.
Now the price action may have a pull back from this resistance and hit the EMA10 or EMA20 and take a bounce to breakout this resistance or can break this resistance without any correction.
The secure buying would be needed an aggressive thinking and that would be: we should wait for breakout from this resistance and wait for some correction most of the times when the price action breaks the resistance then it retests the previous resistance as support so after breaking out the resistance we can place buying at $1.67 and also use this support as our stop loss and in this case if the price action doesn’t break down the $1.67 support then we can easily target the POC of volume profile at $2.35.
However I will keep posting more updates on Lisk when receive any developments.
Regsrds,
Atif Akbar (moon333)
