MATIC → Clear Shot to $1.00!? This Chart Answers that Question.
Polygon broke out of the 200EMA resistance and ran to the upside to flirt with the $1.00 price point in mid-November. We've now seen a two-legged pullback from that price and a double bottom seems to have formed. Does that mean we're ready to try for $1.00 again?
How do we trade this?
We do have many of the required conditions to get long! But we do need to wait on one more condition to give us the optimal probability for our long trade. A bull candle closing on or near its high is the final step and it looks like the current Daily candle could deliver! Once you see that close, it's reasonable to get long and go for a standard 1:2 Risk/Reward ratio, protective stop below the Daily 200EMA and set a profit target around the previous high of $0.95.
Also, be prepared for the bullish scenario to fail. Keep an eye on Bitcoin as a leading market indicator to see if it succeeds in breaking the Weekly Resistance. If Bitcoin reverses at the $39,000 - $40,000 level, watch MATIC's response closely and be prepared to get out of your long. Look for a strong bear bar closing on or near its low with followthrough.
Long Entry: $0.77
Stop Loss: $0.70
Take Profit: $0.91
Risk/Reward Ratio: 1:2
1. Bull breakout of the 200EMA, Trending Bull!
2. Followed by Two-Legged Pullback, Ended Nov 23rd.
3. Double-Bottom Reversal, waiting for close of Strong Bull Candle.
4. RSI at 48.00 below Moving Average, Bias to Short.
5. Short to Minor Support.
You are solely responsible for your trades, trade at your own risk!
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