MATIC → Ascending Triangle Breakout? Or Rejection to $0.60?

MATIC (Polygon) is at a pivotal moment on the chart; follow-through with the Ascending Triangle and breakout to the upside? Or get rejected a third time and fall back toward the $0.60 level?

How do we trade this? 🤔

MATIC → Ascending Triangle Breakout? Or Rejection to $0.60?

To justify a long, we need to break the Resistance Zone and test it for support. We're too close to Resistance to long now, the probability of profit is far too low and the stop loss would have to be placed too far away (bad Risk/Reward). After breaking the Resistance Zone, a protective stop should be placed just below it and a Take Profit at 1:2 Risk/Reward is reasonable.

A short position could be available much sooner if the price is rejected a third time at the resistance zone and falls beneath the Daily 30EMA. What we need is a sell signal bar and confirmation closing on or near their lows, below the 30EMA, and the RSI below the Moving Average.

Until either scenario presents itself, we should remain on the sidelines and watch the price action unfold.

 

💡 Trade Ideas 💡

Short Entry: $0.885
🟥 Stop Loss: $0.955
✅ Take Profit: $0.755
⚖️ Risk/Reward Ratio: 1:2

Long Entry: $1.017
🟥 Stop Loss: $0.937
✅ Take Profit: $1.177
⚖️ Risk/Reward Ratio: 1:2

 

🔑 Key Takeaways 🔑

1. Ascending Triangle, Bullish Pattern!
2. Strong Support on Daily 30EMA.
3. At Resistance Zone, Do Not Long Here!
4. RSI at 53.00 and Below Moving Average. Bias to Short.
5. Wait for break of resistance zone to Long. Short if Rejected.

 

⚠️ Risk Warning! ⚠️
Past performance is not necessarily indicative of future results. You are solely responsible for your trades. Trade at your own risk!

 

Find me at TradingView.com/u/TraderEngineering/

 

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