06/28/2022
There hasn’t been much partying going on in the market aside from day trades and short term overnights…
Here’s Omega Therapeutics, Inc. (OMGA):
Above is the daily chart with a different look than what we’re used to…
This is one of the layouts I use for finding upcoming squeezes with momentum.
OMGA seems to fit the bill…
I’ve kept the chart limited to a more quick-and-dirty analysis…
Most of the indicators on the chart were coded and created by none other than Rogue Investing’s options genius, Chris Hood.
What to look for? Green… LOTS of green.
The ATR Baseline (red and green channel) has flipped green as have the candlesticks…
Yesterday’s orange candlestick is a Divergent Bar. In other words, you can expect the share price to fall lower within the next 3-5 bars, so it’s not a terrible time to take some off the table if you’re already in… But you’ve got time and it may be short-lived, considering the momentum.
Still, the Volume is our first clue that the bulls are stepping in as can be seen on the lower chart.
OMGA has waltzed past the 8, 13, and 21 EMAs — that’s bullish.
Of course, the 55ema (blue) is the current stopping point.
A move past this should tell us to keep an eye on a climb higher… potentially to the 200ema.
The Squeeze Trading Tool 1.2A and Squeeze 4-Pack are both signaling upside with plenty of green while the former just printed the “Long” label several days ago.
What’s important is that both the squeeze histograms and the composite Stochastics (multi-colored line) are positively green…
Lastly, look at the cluster of buy signals on the upper chart.
Long… Reversal Buy… Orange Dot… The latter indicates the squeeze firing long.
The only real Resistance I see would be close to the $10.00 level, however, this is a young chart with limited history.
Based on that, I would look to psychological levels — round and even numbers like $5.00, $10.00, etc., to take profits.
Scale in… Know your risk.
Keep moving,
(Disclosure: I hold no position in OMGA.)
This material is not an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Any performance results discussed herein represent past performance, not a guarantee of future performance, and are not indicative of any specific investment. Due to the timing of information presented, investment performance may be adjusted after the publication of this report. There can be no assurance that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly in this communication will be profitable, equal any corresponding indicated historical performance levels or be suitable for your portfolio.
