Trade Recommendation: OmiseGo (OMG)

OmiseGo

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

OmiseGo crypto chart
As of this writing, the OmiseGo/US Dollar pair is trading at $2.51 on Bitfinex.

Summary of Strategy

Buy: As close to $2.10 as possible.
Target: $3.00
Stop: $1.98

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.