Jun 08

OmiseGo: An excellent opportunity for buyers

Omisego is a decentralized exchange founded in Thailand in 2013 by Omise Co. The cryptocurrency associated with this project is abbreviated as OMG and was based on the Ethereum network, although in 2018 moved to its blockchain.
The first months of 2020 have been good for OMG, but starting in February, it suffered a continuous descent that had its culmination on the so-called Black Thursday. After this event, the asset began to climb until mid-May, when it started to create a parabolic ascent, its bullish momentum accelerating steadily. The culmination of this ascent was on May 22, when it reached near $2.3. After this, OMG started to create a consolidation pattern that is showing a pennant structure.

On the 4H chart, we see that the price is currently supported by its 50-period SMA and that it has all the conditions for a new jump to at least $2.20, as all technical indicators show a primary bullish trend and the pennant is a continuation pattern usually resolved in the direction of the primary trend. Also interesting is that the reward/risk ratio is about 2.75, which is excellent and allows us to keep the long-term results safe from short-term losses- it will require about 30% profitable trades to break-even. Therefore, a bullish setup can be established with the following levels.

The levels

Buy stop: 1,76

Take-Profit: 2.2

Invalidation level: 1.6

Reward/Risk: 2.75

Dollar Risk: $16 for every 100 coins purchased

Dollar Reward: $44 for every 100 coins purchased

Position sizing strategy: Following our recommended 1%  risk position sizing, traders should not buy more than 62 coins for every $1,000 in the trading account.