Hi Guys! This is a Technical Analysis on ARK Innovations ETF (ARKK) on the 1 Week Timeframe.
Jumping right in:
Our current Price action is currently bouncing off a Confluence of SUPPORT Test
We tested this Confluence of Support area the prior 2 weeks.
The Confluence involves:
1. 50 SMA
2. Support Line of the Uptrend Channel
This would make an area to go LONG.
We are currently in the process of testing RESISTANCE from 21 EMA
Since this is one the 1 Week timeframe, we need to observe how this weeks candle interacts with the 21 EMA.
If we can close ABOVE, at the end of the week. That would be a good sign.
NOTE: If we can confirm SUPPORT on 21 EMA, this is a bullish sign. Since UPTRENDS are associated with being ABOVE the 21 EMA
It would hint at or strengthen the probability we move towards the Horizontal "Resistance Line" Above in Red.
This would also be an area to TAKE PROFIT.
BUT my main focus for ARKK would be to BREAK Above and CONFIRM Support over the MAJOR Resistance Line in Orange.
Once we do that, we have CHANGED our MAJOR TREND.
Though we have a long ways to go, keep in mind that when this happens, itll be a CRUCIAL AREA to watch.
Since we havent had 3 touch points, we could be rejected which could make it a short play also.
Now since i believe we must always be prepared. Lets look at the downside, if we can't maintain this current SUPPORT area.
My first downside target would be the line titled "Support Line#1
My 2nd downside target would be the line titled "Support Line#2
To find more evidence of whats to come, i look at the current indicators placed.
STOCH RSI, is currently BELOW the 20 level. A BULLISH CROSS, where Blue line is above Orange ABOVE the 20 elvel, would indicate Bullish momentum coming in. This would help push prices towards Resistance Line.
Notice also RSI, particularly the Black line. We were for a short time, below this line but currently attempting to move back ABOVE. If we can maintain SUPPORT on this, our trend would be intacted. Which would support UPTREND.
Finally the MACD, we need to watch this one closely. We have crossed BEARISH. We need to see a Bullish Cross and maintain staying ABOVE the 0 level. If we do this, i can eventually see ARKK move towards the "MAJOR Resistance line".
__________________________________________________________________________________
Thank you for taking the time to read my analysis. Hope it helped keep you informed. Please do support my ideas by boosting, following me and commenting. Thanks again.
Stay tuned for more updates on ARKK in the near future.
If you have any questions, do reach out. Thank you again.
DISCLAIMER: This is not financial advice, i am not a financial advisor. The thoughts expressed in the posts are my opinion and for educational purposes. Do not use my ideas for the basis of your trading strategy, make sure to work out your own strategy and when trading always spend majority of your time on risk management strategy
Jumping right in:
Our current Price action is currently bouncing off a Confluence of SUPPORT Test
We tested this Confluence of Support area the prior 2 weeks.
The Confluence involves:
1. 50 SMA
2. Support Line of the Uptrend Channel
This would make an area to go LONG.
We are currently in the process of testing RESISTANCE from 21 EMA
Since this is one the 1 Week timeframe, we need to observe how this weeks candle interacts with the 21 EMA.
If we can close ABOVE, at the end of the week. That would be a good sign.
NOTE: If we can confirm SUPPORT on 21 EMA, this is a bullish sign. Since UPTRENDS are associated with being ABOVE the 21 EMA
It would hint at or strengthen the probability we move towards the Horizontal "Resistance Line" Above in Red.
This would also be an area to TAKE PROFIT.
BUT my main focus for ARKK would be to BREAK Above and CONFIRM Support over the MAJOR Resistance Line in Orange.
Once we do that, we have CHANGED our MAJOR TREND.
Though we have a long ways to go, keep in mind that when this happens, itll be a CRUCIAL AREA to watch.
Since we havent had 3 touch points, we could be rejected which could make it a short play also.
Now since i believe we must always be prepared. Lets look at the downside, if we can't maintain this current SUPPORT area.
My first downside target would be the line titled "Support Line#1
My 2nd downside target would be the line titled "Support Line#2
To find more evidence of whats to come, i look at the current indicators placed.
STOCH RSI, is currently BELOW the 20 level. A BULLISH CROSS, where Blue line is above Orange ABOVE the 20 elvel, would indicate Bullish momentum coming in. This would help push prices towards Resistance Line.
Notice also RSI, particularly the Black line. We were for a short time, below this line but currently attempting to move back ABOVE. If we can maintain SUPPORT on this, our trend would be intacted. Which would support UPTREND.
Finally the MACD, we need to watch this one closely. We have crossed BEARISH. We need to see a Bullish Cross and maintain staying ABOVE the 0 level. If we do this, i can eventually see ARKK move towards the "MAJOR Resistance line".
__________________________________________________________________________________
Thank you for taking the time to read my analysis. Hope it helped keep you informed. Please do support my ideas by boosting, following me and commenting. Thanks again.
Stay tuned for more updates on ARKK in the near future.
If you have any questions, do reach out. Thank you again.
DISCLAIMER: This is not financial advice, i am not a financial advisor. The thoughts expressed in the posts are my opinion and for educational purposes. Do not use my ideas for the basis of your trading strategy, make sure to work out your own strategy and when trading always spend majority of your time on risk management strategy
