FETCH.AI FET Elliott Wave Analysis: Bullish and Bearish Scenarios

Introduction

In this update video about Fetch AI (FET), we analyze the current market condition and explore potential bullish and bearish scenarios using Elliott Wave theory. The FET chart indicates the possibility of further upside, which may signal the start of the next upward movement. This movement can be seen as either a fifth wave in the bullish white count or a third wave in the bearish yellow count. The structure, however, presents some ambiguity.

Current Market Structure

The current market scenario appears to be in a position to form another high. While in the white count it represents a fifth wave, in the yellow count, it could simply be wave C of three. Such ambiguity is not uncommon in diagonal patterns, making them challenging to trade.

Elliott Wave Structure

1. White Count: Possible completion of wave five.
2. Yellow Count: Consists of wave 1, wave 2, followed by an ABC structure in wave 3, with a subsequent wave 4 and then wave 5.

Both counts allow for the potential for upward movement, but a crucial consideration is that the low from Friday must hold at the $ 1 level. This level acts as a make-or-break point for either proposed scenario.

Key Resistance Levels

As we determine possible resistance levels, the swings highs to consider include:

• The swing high from August 27.
• The critical swing high from July 15 (or 17) at approximately $ 1.55.

The price range between $ 1.47 and $ 1.55 appears to be an essential resistance zone. Should the price overcome this area, the next significant milestone to consider will be at $ 1.86, which aligns with a Fibonacci extension.

Importance of Fibonacci Levels

To illustrate the significance of the Fibonacci levels: the 100% extension of the ABC structure in the yellow count points to a target of $ 1.86. Generally, if the market can establish a clear five-wave pattern, particularly within the more reliable yellow count, there is potential for further upward movement.

Potential Pullbacks

After achieving the next high, we may need to assess a support area for yellow wave 4, or potentially for a wave two pullback. The crucial retracement level to watch is the 78.6% retracement of the rally beginning on August 5. Price activity below this level could signify a bearish reversal.

Conclusion

In summary, the key takeaway for now is that FET needs to maintain a position above the $ 1 low and ideally complete a five-wave move before any further analysis can occur. The larger bullish scenario aims to target Fibonacci levels in the $ 5 region.

We encourage readers to reflect upon this analysis and engage with the content for further insights.

Keywords

Elliott Wave, Fetch AI, FET, Bullish, Bearish, Market Structure, Resistance Levels, Fibonacci, Wave Count.

FAQ

Q: What is the significance of the $ 1 level in Fetch AI analysis?
A: The $ 1 level is a crucial support level that must hold for the bullish scenario to remain viable.

Q: What do the white and yellow counts represent in the Elliott Wave analysis?
A: The white count may represent the completion of a fifth wave, while the yellow count suggests a structure indicating a potential third wave formation.

Q: Why are Fibonacci levels important in this analysis?
A: Fibonacci levels help identify potential price targets and retracement levels, aiding in determining key support and resistance areas.

Q: What could a break below the 78.6% retracement level indicate?
A: A break below this level could signal a possible bearish reversal and further downside movement in price.