OMG! - Ride that upward trend channel for OmisegoA relatively straightforward piece on request of a reader/follower.
OMG has switched from one upward trend channel to another, like missing a step on a ladder but still going to the attic. You can also compare it a little bit to the typical pitchfork analysis and we are now in the lower end of that upward pitchfork.
- Given that volume is rather low , I expect this trend channel 2 to hold and hence that we will not move to the previous trend channel 1.
- Moreover, we are testing the 38,2 Fibonacci level with current price and this is also more or less the upper resistance of this channel. If we can’t break it, which is the most likely scenario, we will retrace back a little, but I don’t think it will go back more than the lower resistance line of this channel.
- We are seeing some overboughtness in the CCI, and have just made a bullish cross in the MACD. I believe the upward momentum remains intact but it should not get ahead of itself, so do expect some red candles too in this channel. And the trend is your friend, so no need to get out of your position here unless something dramatically changes.
- Now: if we look at the 2h chart, we see a death cross in the MACD, negative pull in the CCI and the candles bending as well, so we can expect downward movement right now in the very short term.
- If we look at the 4-hourly, it is still a bit in the making.
Conclusion: expect some up and downs in this trend channel, but the trend remains your friend for the moment – nothing more than that!
Resistance levels & targets are shown in the chart:
- Upper trend line of the current channel
- 38,2% Fibonacci at 195877
- 50% Fibonacci at 221670
Support:
- Lower trend line of the current channel
- The yellow line at 181405
- Red Fibonacci support
