MATIC SHORT TO $2.19 (or) $1.97

2022年1月1日

A quick analysis on MATIC using both wave theory, Fibonacci analysis :

Wave theory Analysis:

1) MATIC had a nice IMPULSE run-up from Jul 18th to Sep 4th going from $0.61 to $1.78 after a big correction from the previous high of $2.81 to $0.61
2) After a good impulse phase comes the CORRECTION phase, markets usually stay two-thirds of the time in a correction phase
3) Looks like the 2nd wave correction is a simple zig-zag correction touching the support at $1.01 on 25 Sep 2021
4) New impulse Wave 3 then started from $1.01 on 25 Sep 2021 and ended at $2.91 on Dec 26, 2021
5) Wave 3 are usually the longest in the 5 wave series and this seems to be a perfect extended W1

Fibonacci analysis :

1) Wave 2 retraced perfectly at 61.8% of Wave 1 to at $1.01 on 25 Sep 2021
2) Wave 3 extended perfectly at 161% of Wave 1 to $2.91 on Dec 26, 2021
3) Now its time for Wave 4 which I think might take support at 23%, 38% or 50% retracement
4) Right now the Fib 23% is being tested at $2.47, if it doesn't hold maybe next support at 38% $2.2 or at 50% at $1.97
5) Once the FIB 23, 38 & 50 are tested then it will be on its wave 5

Pattern Analysis:

1) In the short term it fits into a nice classic head and shoulders pattern
2) The second shoulder is being just completed


Summary :
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1) Looks like the bears are still in control on Wave 4
2) The support line Fib 23% is being tested at $2.47, if it doesn't hold maybe next support at 38% $2.2 or at 50% at $1.97 should be tested

Happy New year and happy trading guys !!!!!