Although MATIC made a new high yesterday for this summer, it does not tell a compelling story for the days to come. Matic Price got rejected at $1.57 and is forming a double top with the high on June 17. Buyers got tempted to take some profit around this support level, causing a short-term correction and making other buyers take the money and run. For now, the low of August 15 is holding as a near-term support level at $1.36, but it is just a matter of time before sellers take over.
Expect in the coming day some more profit-taking that could result in a price correction of 12% to the downside. Looking for support at $1.25 looks good with the yellow ascending trend line originating from March 22 and already shown in the past its importance with multiple tests both to the price upside and downside. Secondly, we have the green ascending trend line from July 20 that had three trials, confirming its importance.
A bit lower, the 55-daily Simple Moving Average comes in at a price of $1.07. That is still quite far away, but as another supporting power is there, expect short-sellers to buy and close their short positions around the price of $1.25 as multiple support elements are ready to keep the trend pointed upwards.
Long-term buyers who missed the boat back in July will be keen to step in at the above-described support level at $1.25. After the profit-taking has happened, Polygon Matic should have a new rally that could push price action beyond $1.57, breaking the double top. In an ideal technical trade, that support level should be tested, confirming holding for support and having MATIC push further upwards toward $2. Full completion of the trade would be hitting $2.40 as that was the May 26 high – which amounts to a 70% gain.
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