Trade Recommendation: OmiseGo (OMG)
Our May 25, 2019 trade recommendation for OmiseGo (OMG/USD) hit our target. On June 24th, the market climbed as high as $2.5012. Those who stuck to the trading plan grew their investments by over 35 percent in a month.
OmiseGo may have exceeded our target but it was showing signs of weakness. First, it respected the heavy resistance of $3 on June 26th. At that point, the market was extremely overbought on the daily RSI. On top of that, volume was significantly heavy indicating a blow off or the climax of buying. With these signals, we expect the cryptocurrency to correct in the next few weeks.
Technical analysis shows that OMG/USD has taken out resistance of $2.10 on June 22nd. This triggered the breakout from the cup and handle pattern on the daily chart. The breakout ignited tremendous momentum which catapulted the pair to as high as $3.2357 on June 26th.
Now, while we expect a correction, the market remains long-term bullish. The cup and handle breakout is a testament that OmiseGo is uptrending. In addition, the diagonal support remains intact. So, consider buying close to that level.
The strategy is to buy as close to $2.10 as possible. As long as OMG/USD trades above this level, it will likely rally to target of $3.00
The process may take a month.
Daily Chart of OmiseGo/US Dollar on Bitfinex
Summary of Strategy
Buy: As close to $2.10 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.
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