FLOW Technical Analysis: Base Breakout Warns 15% Fall In FLOW Prices

The FLOW price action shows a bearish breakout of the ascending trendline with a bearish candle of 6.39%. Moreover, the recent retest brings a selling opportunity as the retracement lacks volume support. So, should you consider shorting the recovery rally?

Key Points:

Source - TradingView

FLOW Technical Analysis

The FLOW price displays a long-term bullish trend with the support of an ascending trendline sustaining an uptrend for three months. However, the recent reversal from the 50-day EMA results in a bearish breakout.

On 15th September, the 6.39% bearish candle resulted in the support trendline breakout, ending the long-term uptrend. Currently, the bullish reversal retests the bearish breakout bringing a selling opportunity for sideline traders.

If the selling pressure resurges, the FLOW prices will reach the bottom support level at $1.5, accounting for a 15% decline in market value. Moreover, the prolonged correction with a $1.5 breakout can result in a drop to $1.24.

However, a reversal in market prices sustaining above the trendline will retest the overhead supply zone at the $2.15 mark.

Technical Indicators

The RSI slope shows a slight recovery in the nearly oversold zone, avoiding a drop to the oversold boundary at 30%. Moreover, the MACD and signal lines show a bearish crossover starting a bearish trend in histograms. Hence, the technical indicators reflect a solid underlying bullishness. As a result, the FLOW Technical Analysis takes a bearish standpoint and offers a selling or profit booking opportunity as the retest completes.

Resistance Levels - $2 and $2.15

Support Levels - $1.5 and $1.25