Trade Recommendation: OmiseGo
Our February 3, 2019 trade recommendation for OmiseGo (OMG/USD) hit both targets. On March 29th, the market climbed as high as $2.095. Those who stuck to the trading plan grew their investments by over 100% in less than two months.
Now, OmiseGo may have overshot our targets but as always, we weren’t worried because the market was showing signs of weakness. At that point, it was giving us overheated signals. The daily RSI was in overbought territory while flashing a bearish divergence. Thus, we waited for a pullback, and it appears that our patience is about to be rewarded with a solid entry point.
Technical analysis shows that OMG/USD has taken out resistance of $1.80 on March 29th. This triggered the breakout from a large double bottom pattern on the daily chart. The breakout ignited a rally that sent OmiseGo to $2.5353 on April 8th.
From that point, the market corrected. It even went below $1.80 on April 24th. That’s fine because sellers sometimes overwhelm buyers once the breakout rally fades. As long as the bulls recover the support, which they did on May 14th, the market remains strong. Currently, bulls are building a base above $1.80. That’s bullish in our book.
The strategy is to buy as close to $1.80 as possible. As long as OMG/USD trades above this level, it will likely rally to the target of $2.53.
The process may take less than a month.
Daily Chart of OmiseGo/US Dollar on Bitfinex
Summary of Strategy
Buy: As close to $1.80 as possible.
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.