- MATIC price experienced an impressive rally on Monday that continued into Tuesday but has been halted.
- Critical breakout zone at $1.70 remains the primary goal for bulls to break.
- Trade opportunities on both sides of the market are now present.
MATIC price gained more than 11% on Monday, the biggest gain since February 7, 2022. Bulls attempted to rally Polygon even higher during the Tuesday session, but new concerns regarding the Russian invasion of Ukraine have left risk-on markets across the globe reeling.
MATIC price stopped just short of a critical breakout zone, bulls and bears await direction
MATIC price action, like every other asset class considered to be ‘risk-on,’ has faced some pressure throughout the Tuesday session. However, MATICs performance on Tuesday has been highly bullish because it has defended its daily open from further losses. As a result, two trade opportunities have developed.
A theoretical long entry is available on the $0.02/3-box reversal Point and Figure chart. The long entry is a buy stop order at $1.70, a stop loss at $1.62, and a profit target at $2.04. A two to three-box trailing stop would help protect any implied profit after the entry is triggered. The trade represents a 4.25:1 reward to risk setup.
MATIC/USDT $0.02/3-box Reversal Point and Figure Chart
The long entry is based on a Point and Figure pattern known as an Ascending Triple Top Breakout. The setup is invalidated if MATIC price falls to $1.54.
On the short side of the market, the hypothetical short entry is a sell stop at $1.54, a stop loss at $1.62, and a profit target at $1.28. The short idea represents a 3.25:1 reward for the risk setup. A two-box trailing stop would help protect any profit made post entry.
MATIC/USDT $0.02/3-box Reversal Point and Figure Chart
The short entry is invalidated if the theoretical long entry is triggered first.