MATIC price is forming an inverse head-and-shoulders pattern, which broke out on September 3. This technical pattern contains three swing lows, with the middle one the deepest and known as the head. The swing lows on either side of the head form the shoulders.
The peaks of these swing lows can be connected using a horizontal trend line referred to as the neckline at $1.66.
This setup forecasts a 62% upswing, obtained by measuring the distance between the head’s lowest point and the neckline and adding the breakout point at $1.66.
On September 3, MATIC price breached the neckline at $1.66 as it produced a 12-hour candlestick close above it, confirming a breakout. Therefore, investors can expect a continuation of this uptrend to slice through the $1.94 and $2.32 resistance barriers before getting a chance to tag the intended target at $2.70, coinciding with the all-time high.
While MATIC price has breached the neckline at $1.66, it is uncertain that this uptrend will continue. In a bearish case, the bears might break below the horizontal resistance at $1.66, indicating weak buying pressure.
If the bulls fail to reclaim the said barrier, it will lead to a further downswing, but a breakdown of the September 3 swing low at $1.40 will invalidate the bullish thesis.
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