OMG extends rebound above $3, approaches cluster of resistances
- OMG pushes higher after snapping 7-day losing streak on Saturday.
- OMG could extend rally with a break above $3.40.
- Buyers are likely to remain in control unless OMG drops below $2.5.
After closing seven straight days in the negative territory and touching its lowest level in five weeks at $2.76 on Friday, OMG Network (OMG) snapped its losing streak on Saturday and continued to push higher on Sunday. As of writing, OMG was up nearly 5% on the day at $3.07.
OMG technical outlook
With this recent rebound, OMG is closing in on a cluster of critical resistances. The 20-day, 50-day and the 100-day SMAs are sitting around $3.40. Additionally, the descending resistance line coming from late September and the 23.6% Fibonacci retracement of the September downtrend are also located in that area. If OMG manages to break above that area and closes there, it could target $4 (psychological level/Fibonacci 38.2% retracement).
On the downside, $2.5 (September 21 low/the endpoint of the September downtrend) aligns as critical support and the near-term outlook could turn bearish if the price drops below that level.
OMG daily chart
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
