There are 3 different reasons that I thought we should open a Short position hear for pair MATIC/USDT.
Firstly, we can see the divergence on RSI indicator, although MATIC breaks out old ATH but RSI does not. It shows us that bull side is not strong enough and somehow cash flow is moving to other pairs which have better position than MATIC now.
Secondly, on the chart, we could see that 2.7 is a strong resistance level according to Fibonacci Retracement, we hope a back test there (the price could go back to the 0.236 Fib level or price 2.3)
And finally, on the previous day, the price line was out of Bollinger Bands.
Conclusion: Open a Short position - Entry: 2.5-2.7 - Target: 2.3
Comment
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Now price of MATIC is 2.777 and peak is 2.83. However, the divergence still occurs when new peak is created but the RSI of MA is going down.
- Next plan: DCA when 1H chart creates a divergence on RSI of MA. Still Short.