As the market continues to improve we have had OmiseGo on our radar since the 28th of February. It appears patience has paid off as we are getting a nice reversal signal in the buy area we mentioned in our previous article. We are looking to position ourselves for a longer term trade with a preliminary target of 25.
Falling just short of our initial target level we have pulled back into our buy zone and have bought at the 17.35 and 18.59 levels with a preliminary target of 25. The 1 day bar is forming a nice reversal signal and though there is about 51/2 hours left the market has been relatively neutral providing limited risk in entering here. Again I am not using stop losses to manage trades, I actively manage with alerts. A fake break could result in testing the lower level 15.50 which is the 0.382 retrace of the overall move from the Feb low. Because it is still possible to test this level before moving higher I have decided to enter in three positions and have allocated funds accordingly. If we test the lower level I will have no issue adding there and would look for a reversal signal prior to entering. There is still the possibility that we could test the 13.65 level which is the 0.618 retrace of the overall bull move, and though unlikely we can not discount it. A pullback to this level would surely bring in buyers and I will be one of them. We are looking at the 22.33 level as a and may reduce position there based on price action.
Showing patience in active markets is one of the keys to successful investing and trading. Keeping our emotions at bay and not worrying about missing an opportunity often opens the doors to new ones. Keep in mind that OmiseGo is a core holding and whether we pulled back or not was insignificant to the longer term perspective. As we start to see the market in general favoring the bulls we will continue to look for opportunities to trade and not try and force trades. Many times we miss trades and the best thing we can do is be patient and look for opportunities elsewhere.
There is always a good trade somewhere, do not confuse this with trying to be a good trader. Again these are ACTUAL TRADES NOT THEORETICAL ONES.