Trade Recommendation: Lisk

Our August 16, 2018 trade recommendation for Lisk/Bitcoin (LSK/BTC) achieved its target on August 23 when the pair climbed to as high as 0.00078168. Those who followed the recommendation grew their investments by over 60% in seven days.

Though the market overshot our target, we were confident that LSK/BTC would significantly correct once the breakout rally faded. This is why we tempered our expectations and erred to the side of caution. After all, the overall crypto sentiment at the time was still extremely bearish.

Nevertheless, we knew that with the correction comes the opportunity to buy the dip. We’ve waited for that chance for about a month and now it has presented itself.

Technical analysis reveal that LSK/BTC is creating a bullish pennant on the daily chart. It looks like the pair has managed to carve a bottom at the breakout area of the falling wedge. This is a very good indication that the market is still bullish despite the recent pullback. The ability to stay above the breakout tells us that LSK/BTC is creating its first higher low in months.

In addition, the daily RSI seems to be respecting support of 37.5. This is another bullish signal. It shows that market participants are no longer allowing LSK/BTC to revisit oversold territory.

The strategy is to buy as close to 0.00048 as possible. Once consolidation is complete, LSK/BTC will likely resume its uptrend and climb to our target of 0.00078. The process might take a month.

Daily Chart of Lisk/Bitcoin on Poloniex

As of this writing, the Lisk/Bitcoin pair is trading at 0.00048831 on Poloniex.

Summary of Strategy

Buy: Buy as close to 0.00048 as possible.

Target: 0.00078

Stop: 0.00046

 

Disclaimer: The writer owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Kiril is a CFA Charterholder and financial professional with 5+ years of experience in financial writing, analysis and product ownership. He has passed all three CFA exams on first attempt and has a bachelor's degree with a specialty in finance. Kiril’s current focus is on cryptocurrencies and funds, as he does his own crypto research and is a Product Manager at Mitre Media. He also has his personal website, InvestorAcademy.org where he teaches people about the basics of investing. His ultimate goal is to help people with limited knowledge of finance and investments to create investment portfolios easily, and in line with their unique circumstances.