FET Price Consolidates After Channel Breakout, Signaling a Potential Uptrend
FET price made a symmetrical triangle, signaling consolidation after September runup. New uptrend could be developing.
Key Takeaways
- The WXYXZ correction ended at $0.73, forming a base for recovery.
- Price consolidates in a symmetrical triangle.
- Resistance at $1.77 Previous wave (v) high is a key breakout target.
Currently, the price is consolidating within a symmetrical triangle between $1.54 and $1.26, indicating a potential setup for a bullish continuation, but a breakout will provide a strong confirmation.
FET Price Analysis
The daily chart for FET indicates a notable recovery from its recent corrective structure. It formed a clear WXYXZ pattern that bottomed out at $0.73 in August.
Following the rebound, the price surged in a five-wave impulsive structure, peaking near $1.77 On Sept. 24 before entering a corrective phase. A descending channel formed, leading to a 0.618 Fiboancci retracement at $1.138, after which a breakout occurred, reaching its next high of $1.65 on Nov. 12.
Currently, the price is between the 0.236 Fibonacci retracement level at $1.54 and the 0.5 Fibonacci retracement at $1.26. signaling a potential bullish continuation.
The Relative Strength Index (RSI) suggests mild recovery but is neutral, indicating balanced market conditions with room for further movement.
Considering that we saw a five-wave impulse, leading to a 0.618 Fib retracement until Nov. 4, the recovery seen since then could be the next starting uptrend.
Key Observations:
- Corrective Phase Ended: The WXYXZ structure completed at $0.73, confirming a base for recovery.
- Consolidation Seen The price is forming a symmetrical triangle between 0.382 and 0.5 Fibonacci level
- Resistance at $1.77: This level aligns with the prior wave (v) peak, a key barrier for bullish continuation.
FET Price Prediction
Looking closely at the hourly chart, the recovery from Nov. 4 to 12 could have been the first sub-wave of the next five-wave impulse to the upside.
That would mean the forming symmetrical triangle is a corrective ABC structure following a significant impulsive rally.
The price correction could have already developed its two sub-waves, with wave (c) likely approaching its conclusion as the final retest of the ascending support.
The current consolidation phase aligns with critical Fibonacci retracement levels, suggesting potential for a bullish continuation if key support zones hold.
The broader Elliott Wave structure remains intact, with the possibility of a larger wave (iii) forming after the corrective phase.
If an upward breakout above $1.77 confirms this outlook, our next target would be the 1.618 Fib extension at $2.15.
As that would only be the third sub-wave, further advancement would be expected as the price continues its bull phase.
Key Levels to Watch
Support Levels:
- $1.41 (0.236 Fibonacci): Immediate support for wave (c) completion.
- $1.28 (Wave (c) low): Key zone for maintaining bullish structure.
- $1.13 (0.618 Fibonacci): Strong base for accumulation if corrective extension occurs.
Resistance Levels:
- $1.77 (Wave (v) high): Critical level for confirming bullish continuation.
- $1.97 (1.272 Fibonacci extension): Potential wave (iii) target upon breakout.
- $2.15 (1.618 Fibonacci extension): Longer-term resistance for extended wave formation.
FET’s ability to hold above $1.41 will be crucial for confirming the end of wave (c) and initiating the next impulsive wave.
A breakout above $1.77 would validate wave (iii), targeting $1.97 and potentially $2.15 in the near term.
Conversely, failure to sustain above $1.28 may result in a deeper correction before a bullish reversal.
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