InstaForex

September 27, 2021

Pullbacks on MU and MATIC And GBP/USD’s Reversal Setup

 Welcome to the last trading week of September!


End the month with a bang by taking advantage of MATIC/USD, and MU’s retracements. Oh, and take a look at GBP/USD’s long-term resistance!


Think you can make profits from these charts?


MATIC/USD: Daily

Polygon (previously the MATIC network) is poppin’ up interesting dojis and long wicks around the 1.0000 zone.



And why not? As you can see, the level lines up with not only the 61.8% Fib pullback of the last big downswing, but it’s also flirting with the 200 SMA on the daily time frame.

Will the token go back to its 1.8000 highs? Look out for momentum above the 200 SMA, which would mean that MATIC/USD is ready to retest its September highs.


Not convinced that MATIC will bounce this week? You can also wait for bullish momentum or a pullback to a long-term trend line support if you want better risk ratios on your long trades.


MU: Weekly

Semiconductor-maker Micron Technology (MU) is printing its earnings reports this week!


If you’re trading the stock, then you should know that the weekly chart is showing some consolidation around the $70 previous resistance level.


A dip to the $60 – $65 zone might attract more bulls as it’s closer to a previous resistance area and the 100 SMA on the weekly time frame.


Bulls who are betting on the bullish divergence can target the highs just under $100 if you do see some buying pressure.


If MU starts dipping below $70, though, then you gotta watch out for the inflection points that we talked about to see if there’s buying opportunity!


GBP/USD: Weekly

I don’t know if you’ve noticed, but GBP/USD’s 1.4200 psychological resistance has been holding like a champ so far this year.



What makes Cable’s weekly chart interesting this week is that it’s showing a Head and Shoulders pattern just under the range resistance zone.

Will the pound soon see more losses against the dollar? Selling at the break below the Head and Shoulder’s “neckline” is a good bet if you’re waiting for selling pressure after the range resistance rejection.


If you’d rather buy GBP/USD, though, then you’ll want to do it at a clear bounce from the “neckline” and then use the 1.4200 zone as your initial targets.