With Bitcoin recently breaking out to new all time highs the Crypto and Blockchain market has reached fever pitch. Future FinTech Group is a stock that has been consolidating since it peaked in July but is now breaking out. With this breakout an Incomplete Bullish Sequence has been created. Lets take a look at what the company does:
“Future FinTech Group Inc. is a leading blockchain technology R&D and application company incorporated in Florida. The operation of the Company includes a blockchain based online shopping mall platform, Chain Cloud Mall (“CCM”) , an incubator for blockchain based application projects, a digital payment system “DCON” and a cross-border e-Commerce platform "NONOGIRL". The Company is also engaged in development of blockchain based e-Commerce technology as well as financial technology.”
Lets dig into the charts!
Future Fintech Elliottwave View
Longer term term view from the all time low in December 2019. There is a 5 waves impulse that peaked on 7/16/2020 @ a high of 3.74. After that, Red I peaked, and the stock was in a sideways correction/consolidation period for an extended amount of time. With the rally that took place today, it is favoured that the Red II has been set and Red III is underway. Moreover, the rally was very sharp today, and has entered into the blue box extreme area. This is an area where buyers and sellers usually enter for bounces and pullbacks. In this case, some profit taking may take place before further upside.
In Conclusion, the wave count is incomplete right now. A black (1) and (2) are preferred to take place before further upside. With a nesting (1) and (2) expected, we can look to higher targets once (2) is complete. if the 1.618 extension gets exceeded with momentum, the next fib area where a pullback can take place is at the 2.618 @ 10.29.
Using proper risk management is absolutely essential when trading or investing in a volatile stocks. Elliott Wave counts can evolve quickly, be sure to have your stops in and define your risk when trading.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.