Hello and welcome to another update on Fetch AI (FET)! Yesterday, we discussed the positive reaction of FET to the micro support area, and it appears to be moving higher in wave C of this larger A-wave. Here's a closer look at what's unfolding.
Current Wave Structure
We're currently in a wave four correction of a larger wave degree after the third wave topped around $3.50. Ideally, the third wave would have stretched to the $4.70-$4.80 range, but it fell short. Despite this, the third wave is still valid, just not as reliable as we'd like.
ABC Structure and Potential Movements
If the third wave only met the minimum target, the decline we've seen may be just the A-wave of wave 4. In an ideal Elliott wave scenario, the B-wave could reach the $4.70-$4.80 range before a C-wave brings us back down. This movement would be significant, highlighting the likelihood that the unfolding B-wave could be aggressive.
It's also possible that wave 4 has already bottomed, though I'm skeptical. We won't know for sure until later. For now, we need to watch the relevant support levels and take things step by step.
Recent Market Reactions
The market has reacted, showing a higher low and rallying into resistance. We touched the trend line, got rejected, moved into micro support, and found support between the 61.8% and 50% retracements (around $1.31 and $1.38). Another noticeable reaction occurred in three waves, touching resistance and getting rejected again.
One more high would be ideal, indicating the next five-wave move up could be part of this C-wave. We'll need to see how this subdivides, but we could be in the C-wave up (A-B-C). The B-wave might top here, but a larger A-B-C pattern will provide the relevant support and resistance levels.
Key Levels to Watch
The next resistance level to break is $1.73. We haven't been able to break above the trend line and are still below resistance. A move above $1.73 is needed for further upside potential.
If we take the length of the A-wave and project it from the presumed low of the B-wave, the 100% extension level points to $2.13, which is an ideal target. We'll first aim for $2.13 if we can break above $1.73. These are the key levels to watch.
Downside Risks and Conclusion
Downside pressure would increase with a break below the Monday low ($1.35). The current structure is unclear from an Elliott wave perspective because we're dealing with corrections, but I'm tracking this as an A-B with a possibly unfolding C-wave. We should get some clarity soon.
Just be aware that the current move-up could be a B-wave. As long as we're holding the Monday low, we can focus on higher targets. If it turns into something more bullish, that's great, but the B-wave could still be quite aggressive.
That's the update on FET. If you enjoyed this update, please hit the like button and leave a comment!