Matic Upside - Close to a critical level
Matic, the native token of Polygon, is close to a critical level that could result in a solid move to the upside. Read on for all the details about this possible swing trade setup on Matic/USD.
Since the end of December 2021, Matic has been in a strong downtrend. After setting a high of around 2.93, the price of Matic/USD has seen a decline all the way down to the 0.32 level. Currently, the market price for Matic is just around the 0.73 level.
If we pull a fixed range Volume profile from March 2021 and up until today, we can see that we currently trade outside the value area. The Value area low for this period is around the 0.98 level. After a recent touch of this level, we saw a drop-down to the current level where Matic is trading.
But if you look at the volume profile for the fixed range, you will see we have a high volume node at the 0.5865 level. Click on the image below to see it in full size.
Now, if we pull a fixed range volume profile for the current range – from May 7th, 2022, till today, we can see that the value area low of this period aligns perfectly with the level of the high volume node – they fall precisely on top of one another.
Now, if we take the Fibonacci retracement tool and pull it from the swing low at 0.3150 to the swing high at 1.0548, we can see that the 0.618 retracement level aligns perfectly with the level of the value area low and the high volume node.
Needless to say that this level is vital, and we are likely to see strong support here. Because of this, I will be looking for a possible long trade around this level. As we also have a daily level of support at the 0.5355 level, I will be looking to place my stop loss just slightly below this level.
If you click the image above, you can see exactly how I plan to trade this. I will look for an entry around the 0.6067 level, with a stop loss at the 0.5200 level and an initial target at 1.2283. A trade with these levels would give us a risk: reward of more than 7. This is definitely a setup worth trading in my opinion.
If you want to execute this trade with me, you can sign up for an account with PrimeXBT right here.