We are setting up for a POTENTIAL buy opportunity. IF it plays out, it can allow you to get in or double down on your position.
OMGUSD has been in a consolidation phase after a strong impulse up on 5 Jan. Within that time the resistance at 19 has held, giving us confidence in our position. Between now and Monday, whilst being mindful of what is happening with BTCUSD , the market could sideways trade around the 21.5 area until we meet the medium and long term (green/pink). This is also likely to coincide with a meeting of the 50MA. At this point the market MAY decide to continue the bull run. This should see it going up to around 28-30. Although there is resistance at 26 along the way. The signal is it getting close to (slightly before or slightly past ) the and then a reversal. We should see this action over a sustained period - e.g. on the 6 hour chart. Risk management can be via a STOP below the , between 17-19 depending upon your risk appetite.
I do NOT recommend buying in advance, wait for the signal.
Signal : Hitting the and bouncing up (6 hour chart)
Target 1 : 28-30 (but you could take some profit at 26)
Target 2 : 38
Stop loss : Between 17-19
I'll keep this post updated if it receives 10 or more likes (thumbs up).
So where does this leave us? I see four likely scenarios that all keep the main bull trend intack.
P1) Continues up to the trend line resistance (diagonal blue) and breaks through
P2) Continues up to the trend line resistance (diagonal blue) and consolidates back down to the bottom support 25-26 (diagonal green).
P3) Doesn't break the 26 resistance and consolidates back down to the bottom support 23-24 (diagonal green).
P4) Lacks momentum in current impulse and comes back to support line 21-22(diagonal green).
Not that helpful I here you say? By understanding what events could unfold, it stops us either buying at the wrong time or panic selling when the price goes down. The above scenarios are all normal market behaviours. The key is to watch for the opportunities which minimise risk and maximise up side. OMG is a great medium term opportunity. This go around, for my risk profile (yours may be different), the TA didn't align for a short term (1-5 day) opportunity.
Main trend: Bull
Short term trend : Bull
This could align nicely with OMGBTC meeting its bottom resistance line and therefore provide extra momentum for the next impulse, allowing it to break through the 26 resistance.
OMG may simply go up from here, which is fine, I still have my long position but I won't be doubling down unless the risk balances in my favour.
Things are looking pretty good and it's working through that upward channel to $26 with a target of $30.
It continues to appreciate against BTC, and is supported by an upward diagonal in the short term. There is resistance just under 0.0018 which we need it to break through if OMGUSD is going to break the $26 resistance and reach $30. I'm also not ruling out a return to the bottom resistance line again.