Trade Recommendation: OmiseGo | Hacked: Hacking Finance
hacked.com - Kiril Nikolaev
OmiseGo (OMG/USD) is a market that’s trying to carve a bottom. This bottoming out process began when OmiseGo dropped to $1.0898 on December 15, 2018. At that point, the market may look like it was struggling to find its footing. In reality, it was actually relying on a support that has existed since July 2017.
This was the level where the smart money accumulated positions before launching a bull run that saw the market climb as high as $13.70 on September 12, 2017. Thus, it is not at all surprising to see OmiseGo back at $1.09 over one and a half year later.
Technical analysis shows that OMG/USD is in sideways consolidation. This view comes after the market once again respected the range low of $1.09. With this price action, OmiseGo is now forming a double bottom pattern on the the 4H chart. While this structure might be enough to be the foundation of the market’s next bull run, for now, we’ll settle with the idea that the market has established a durable bottom. This should be enough to generate significant profits.
In addition, we believe $1.09 will hold because bulls have already shown their hand. You will notice that OMG/USD broke this support temporarily on February 1, 2019. However, bulls immediately scooped positions to reclaim the support. Lastly, we can see a bullish divergence on the 4H chart. This is an indication that OmiseGo is turning bullish.
The strategy is to buy as close to $1.09 as possible. As long as OMG/USD trades above this level, it will likely rally to our range midpoint of $1.51. Take that out and the next target is $1.93.
The process may take less than a month.
Daily Chart of OmiseGo/US Dollar on Bitfinex
As of this writing, the OmiseGo/US Dollar pair is trading at $1.0938 on Bitfinex.
Summary of Strategy
Buy: As close to $1.09 as possible.
Targets: $1.51 and 1.93.
Stop: $1.045
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.
Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.
Rate this post:
Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
Kiril Nikolaev, CFA
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 ETFs, as he does his own crypto research and is the subject matter expert at ETFdb.com. 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.
Source hacked.com