Trade Recommendation: Omni/Bitcoin

We’ve been following the Omni/Bitcoin pair (OMNI/BTC) for some time now. Our March 17, 2018 trade recommendation nailed it both ways. The pair dropped to 0.0026 on April 9. Furthermore, it achieved our target of 0.005 on April 19. Those who followed this trade recommendation would have grown their investments by 92.31%.

While we expected the pair to trade the range, it appears that it is building enough momentum with the aim of taking out the 0.005 resistance. This comes after the pair created a higher low of 0.003457 on April 24. Bulls are currently using it as the staging ground for the next assault, one that bears are not likely to repel.

Technical analysis reveal that Omni/Bitcoin is in a good position to take out resistance of 0.005. This would trigger the inverse head and shoulders reversal pattern on the daily chart.

To complete the breakout, the pair needs to print volume of over 60,000 Omni units. Those who bought the higher low are likely to take profits at the resistance. The market needs buyers who can help push the price up.

The strategy is to buy the breakout at 0.005. If bulls complete the breakout, they will create a base above 0.005 before moving to our target of 0.007.

The process may take a month.

Daily Chart of Omni/Bitcoin on Poloniex

As of this writing, the Omni/Bitcoin pair is trading at 0.00478074 on Poloniex.

Summary of Strategy

Buy: Breakout at 0.005 with 60,000 of Omni in volume.

Target: 0.007

Stop:  0.00465 after the breakout.

 

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.