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

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