Elliot wave theory and more

FLT has been following Elliott wave theory perfectly since the upward break from the descending channel (blue). In Elliott wave theory there are 5 waves, Wave 1,3 and 5 are ascending (pumps) and wave 2 and 4 and descending (dumps). With each Elliott wave (1-5) there is a complete sub-Elliott wave 1-5 followed by an ABC correction. The first wave has already carried out the sub 1-5 waves perfectly (blue) and the ABC correction could come with the back test of the descending channel (yellow) and the 0.618 Fibonacci retracement level. The back test of the descending channel/0.618 Fibonacci retracement level also lines up with the ascending triangle breakdown target (which it has potentially broken down from). I believe this to be the most probable case as FLT hasn't yet created a higher high, meaning a final lower low is possible before the first 3 wave impulse.


If the coming "3" wave impulse (which is the most parabolic) hits the 2.272 Fibonacci retracement the price would be ~$8. We could then see a retracement to the 0.236 Fibonacci level (which is typical for a 3 wave) which would put the price at ~$4.9. Then, if we see a final 5 wave impulse to the 1.618 Fibonacci retracement level then the price would hit ~$10.85.


If the targets I set aren't met, a good time to take profits during the 3 wave and 5 wave impulse is when you see a bearish divergence (on the daily) in the RSI/price action (red lines) accompanied by the 5th impulse wave.