OMG had a very nice pop the last few days. Can we expect this to continue in the shorter term?
Well, its all up to what she does at this level. After the breakdown of the ascending channel we fell off dramatically. The good news is after we fell out the next few days painted a nice descending broadening wedge (bullish short term). Not only that, but we showed pretty major bullish divergence on your MACD and RSI. We made a low on price with very high negative momentum on your MACD and RSI and then another lower low with extremely less negative momentum on both indicators. This is 3 reasons for the pop after all the variables were in place.
Target areas for breakouts on a descending broadening wedge usually are 38% & 50% upwards from swing high to swing low. Think of this as a retracement pattern inside an overall bearish trend. I've drawn that here and it appears we've already touched it and got rejected by that area on point. Now, in order to avoid staying bearish, we need OMG to break above the 50% and hold. This area is at 516 SAT area. The volume is starting to increase which is very good. That's a start. The problem is theres a lot of resistance ahead. We must get through the 50% retracement, above the 200 MA (blue trend line), and the bottom of your previous ascending channel. That is going to take a lot of volume to break the bearish state. If we fail to break these resistances, we do have some support at the 75% fib channel retracement (diagonal light blue line). This area is our last stand before negating any short term bullishness and making new lower lows.
Overall, the next few days will explain to us in more clarity if we will have the muscle to break the bearish trend. As of now, we cannot be bullish until these areas of resistance are broken with volume. We are close, but we need much more.
Some good news to leave off with:
OMG has just received very large investment from Japanese VC firm Global Brain with participation of 31VENTURES and SMDV (Sinar Mas Digital Ventures). It's always good to see when a company receives funding from well known Asian investors who have come aboard to support the OMG project. This will also, greatly help extend the reach of OMG's community. Getting a hold of Asia's market is crucial in this space. Either way, its some good news behind closed doors in a bear market so we'll take it any way we can get it at this point.
Link to article below:
https://www.dealstreetasia.com/stories/thai-ico-unicorn-omise-109117/