MATIC price consolidates before jumping to $1.90
- MATIC price shows a tight congestion zone in its $0.01/3-box reversal Point and Figure chart.
- Critical support zone must hold, or Polygon faces a substantial drop near $1.40.
- Large price swings are expected on the long and short sides of the trade.
MATIC price continues to consolidate between the $1.60 and $1.70 support zones. As a result, buyers look for an opportunity breakout towards the $1.90 zone, while bears look for a return to $1.40.
MATIC price action shows strong trade setups for bulls and bears
MATIC price has developed a consolidation zone that has created two possible entry levels for the short side of the market. The first hypothetical trade is on the long side of the market with a buy stop order at $1.69, a stop loss at $1.65, and a profit target at $1.90.
The hypothetical long trade setup is based on a breakout above a split quadruple top pattern. The long idea represents a 5.25:1 reward/risk with the profit target in the same range as the daily Kijun-Sen (not shown). A two-box trailing stop would help protect any implied profit made after the entry is triggered.
MATIC/USDT $0.01/3-box Reversal Point and Figure Chart
The long setup is invalidated if MATIC price drops below $1.58.
The theoretical short trade idea is a sell stop order at $1.61, a stop loss at $1.65, and a profit target at $1.47. The entry is based on the breakout below a triple-bottom that converts MATIC back to a bear market on this Point and Figure Chart. The short idea represents a 3.5:1 reward/risk.
MATIC/USDT $0.01/3-box Reversal Point and Figure Chart
A two-box trailing stop would help protect potential profit made post entry. The theoretical short entry is invalided if MATIC price moves to $1.70.
Author
Jonathan Morgan
Independent Analyst
Jonathan has been working as an Independent future, forex, and cryptocurrency trader and analyst for 8 years. He also has been writing for the past 5 years.
