After producing an engulfing bull candle for the textbooks while recovering from a crash, Polygon is continuing to experience chop coming off May's super-rally.
Price recovered to $1.99 before backing off to the $1.50-$1.75 zone yesterday.
Today there is some retracement back from the recovery rally, however, as we see above, we have the 50 EMA crossing above the 200 EMA on the 1H, but the short-term MACD doesn't support the move. However, when we pull back to the 4H, the picture becomes more clear.
Polygon is too new for the 200 day moving average to have much significance so we are going to use the 4H 200 EMA for now. And there you see the market pinned the 50 EMA on the 4H and started to move price back up. What's the 50 EMA on the 4H? The 200 EMA on the 15min!
We should expect chop as we pull away from the crash and recovery rally. There is a line of support around current price. A breakdown would push price to support at $1.33 while a bounce off the moving averages sends price back to challenge $2. Based on the regional low of $0.35 where the rally starts, and using the candles, not the wicks, we can expect to find resistance at $2 and $2.17. A move above $2.55 would send MATIC into price discovery in search of $3.02.
Realizing that the market makers move price within daily ranges and recognizing that there is a strong relationship between price, volume, and moving averages, when we see price bounce off a moving average, that's important. The patterns that develop as price crosses moving averages are particularly telling. Charts are a map, you just have to learn how to read them.
Anyway, the oscillators on the 1D set up nicely for another rally. It seems like the crash reset everything across the board.
RSI - 56.98
CCI - 53.57
Targets for MATIC for 2021 range from $1.65 up to $3.03. Targets for the 12-month period range from $3 up to $6.49.
*Not financial advice, always DYOR. The above is simply analysis, it's on you to decide your own entry points and exit points. I hope to teach you to fish but I will not feed you. If you've enjoyed this content, please give it a like, give me a follow, and perhaps, even send a tip. In the interest of full disclosure, at the time of this writing, the author held small position in Polygon MATIC.