Disclaimer: This is not financial advice. Please conduct your own research before making any trading decisions.
This analysis explores a potential scalping strategy for Lisk (LSK) based on a possible trend reversal within a rangebound market.
Market Context:
LSK is currently trading at $1.51 with a 24-hour trading volume of $4.2 million, experiencing a significant decrease of 38.88% compared to the previous day.
The monthly chart suggests a downtrend, while the weekly chart indicates a rangebound scenario for LSK.
Scalping Strategy for a Potential Reversal:
This strategy hinges on the possibility of a price reversal within the current range.
A key level to monitor is $1.48, where the price recently stopped its decline on the daily chart.
Entry Points and Stop-Loss:
Conditional Entry 1: If the price respects the $1.48 support level and shows bullish reversal signals, a 50% entry into the position could be considered.
Alert and Potential Entry 2: An alert has been placed at $1.34. If the price reaches this level, another 50% entry could be considered, signifying a more aggressive approach.
Target Profits: Two potential profit targets are suggested:
$1.7: This represents a conservative target profit for a quick scalp.
$1.98: This is a more aggressive target profit aiming for a larger gain if the reversal strengthens.
Stop-Loss: A stop-loss order placed below $1.19 is crucial to manage potential losses if the downtrend continues.
Market Considerations:
- Scalping during a potential trend reversal requires close monitoring and confirmation of bullish signals.
- This strategy is suited for smaller position sizes due to the uncertain market conditions.
- Always prioritize risk management and never invest more than you can afford to lose.