Disclaimer: I am not a professional trader and this is not financial advice, just an idea of what I see. Crypto has a high risk/high reward ratio and moves faster than traditional markets. Only bet what you can afford to lose.
It looks like we have a lot of top altcoins that have finally reached their bottom, OMG looks like it is about to shoot up to the daily 200 MA and retest a previous resistance level.
A pretty obvious double bottom has occurred in the past 2 months, drawing a clear support at the 9000 satoshi range.
OMG has attempted to breach the daily 50 MA 3 times until it finally breached and held it.
Today it started breaching the first resistance level between 11000 and 12000 satoshi, gaining momentum.
We can also see a nice cup in formation, the bottom of which is a nice 2 months of consolidation.
The potential gain from the current price is roughly 40% if we continue the uptrend and as we start tickling the daily 200 MA to end the cup formation. I would assume this to occur within the next 2 weeks, maybe earlier.
How I would trade this:
Entry: now with a stop at 10000 around the daily 50 MA and a sell order at 9500 to give it a bit of legroom to avoid getting our position taken out too early. Taking profit at 17000 satoshis where I expect OMG to be pushed back a little to form the cup's handle.
It looks like we have a lot of top altcoins that have finally reached their bottom, OMG looks like it is about to shoot up to the daily 200 MA and retest a previous resistance level.
A pretty obvious double bottom has occurred in the past 2 months, drawing a clear support at the 9000 satoshi range.
OMG has attempted to breach the daily 50 MA 3 times until it finally breached and held it.
Today it started breaching the first resistance level between 11000 and 12000 satoshi, gaining momentum.
We can also see a nice cup in formation, the bottom of which is a nice 2 months of consolidation.
The potential gain from the current price is roughly 40% if we continue the uptrend and as we start tickling the daily 200 MA to end the cup formation. I would assume this to occur within the next 2 weeks, maybe earlier.
How I would trade this:
Entry: now with a stop at 10000 around the daily 50 MA and a sell order at 9500 to give it a bit of legroom to avoid getting our position taken out too early. Taking profit at 17000 satoshis where I expect OMG to be pushed back a little to form the cup's handle.
Comment:
As we have breached and closed the first resistance level, there's a second one to close above between 12400 and 12900. If this occurs, we're very likely to see OMG shoot up to test 17000 satoshis.
Comment:
Well, as usual when BTC takes a drop, so do the Alts.
OMG is still above the 50 daily MA.
If you have opened a trade as I suggested above, ensure you have your stop-losses set up correctly. A 10% drop isn't anything new in crypto.
If you haven't opened a trade just yet, I would wait for OMG to test it's lower support level at the 10000 satoshi mark which coincides with the daily 50 MA and see what it does.
OMG is still above the 50 daily MA.
If you have opened a trade as I suggested above, ensure you have your stop-losses set up correctly. A 10% drop isn't anything new in crypto.
If you haven't opened a trade just yet, I would wait for OMG to test it's lower support level at the 10000 satoshi mark which coincides with the daily 50 MA and see what it does.