FLOW Drops 14% Since Recent Peak, Uptrend Faces Pullback Before Possible Rebound

Key Takeaways

• FLOW peaked at $1, marking the top of wave (iii).
• Signals a wave (iv) corrective phase before wave (v) continuation.
• $0.654 is essential for maintaining the bullish trend.

FLOW’s price analysis highlights a bullish breakout from prolonged consolidation. The price surged to $1 on Nov. 24, completing its uptrend.

Despite overbought Relative Strength Index (RSI) conditions and a 14% pullback, the bullish momentum remains intact as the price consolidates within a descending triangle, signaling a potential uptrend continuation.

Still, an interaction with ascending support will provide further insight.

FLOW Price Analysis 

The daily chart for FLOW shows a decisive bullish breakout, marking a strong wave (iii) rally after a prolonged consolidation phase since the Nov. 4 low of $0.47.

The price surged past the $0.654 resistance, reaching a high of nearly $1 before encountering resistance near prior structural highs.

According to our count, this move confirms a larger impulsive Elliott Wave structure, with the current rally representing wave (iii) of a five-wave pattern. 

The Relative Strength Index (RSI) indicates overbought conditions, suggesting a potential wave (iv) correction in the near term. However, the broader bullish structure remains intact once key support levels are maintained, setting the stage for a potential wave (v) continuation to higher levels.

Since the $1 high on Nov. 24, we saw a 14% decline that could have signaled the beginning of its corrective phase. But the amount of the seen decrease in conjunction with the price action structure still isn’t enough to confirm this possibility.

Key Observations

• Wave (iii) High: The price reached $1, marking the completion of wave (iii) and encountering resistance at prior structural highs.
• Overbought RSI: The RSI shows overbought conditions, signaling a likely wave (iv) corrective pullback before further continuation.
• Key Support Levels: The $0.654 support level is critical for maintaining the bullish structure and preventing a deeper retracement.

FLOW Price Prediction

The hourly chart for FLOW reveals a consolidation phase after completing the lower-degree wave (iii), which peaked at $1.

The price forms a descending triangle, suggesting a potential corrective phase in wave (iv) before resuming its upward trajectory for one higher high in wave (v). 

The ascending trendline from the wave (ii) low supports the current structure, indicating continued bullish momentum if the price remains above this line.

However, a breakout below it could indicate that the uptrend since Nov. 4 ended, in which case we can anticipate a larger correction. 

If the symmetrical triangle breaks upward, FLOW could aim for new highs, with wave (v) targeting the $1.10 area.

Key Levels to Watch

Support Levels:

• $0.872: Immediate support level within the descending triangle.
• $0.857: The ascending trendline is critical for maintaining the bullish structure.
• $0.654: Major support zone aligning with prior breakout levels.

Resistance Levels:

• $1: Recent high marking the top of wave (iii); key for confirming wave (v).
• $1.150: Extended wave (v) projection if bullish momentum accelerates.

In summary, FLOW consolidates within a descending triangle, with $0.872 as immediate support. A breakout above $1 would validate wave (v), targeting $1.10 and potentially higher.

However, failure to hold the ascending trendline near $0.857 could signal a deeper retracement, testing lower support at $0.654 before resuming the uptrend.