Today we will take a look at Cathie Wood´s flagship, ARKK.
Main elements of the chart:
a) The price is against a resistance level + Lower trendline of the flag pattern (bigger white structure) + Lower trendline of the inner descending channel.
b) Generally speaking, every time we find this level of alignment between technical elements, we tend to observe good reactions.
c) So, should we BUY? No, remember that you should always use confirmations or filters before taking action. In this case, we want to see a bounce + small correction on the edge of the inner descending channel. If that happens, we can think about trading towards the higher trendline of the flag pattern (bigger white structure)
d) What are the targets I can expect? We have two to propose. The first one is the higher trendline of the Flag pattern, and the second target is the resistance level at 130.00
e) Speaking about duration, we can expect a 50 to 70 days movement for a full movement like the one we are expecting
f) We also have defined a red horizontal line that represents an invalidation level for this analysis. That means that we will assume that the price broke the current level, and we should expect bearish pressure until the next support level.
Thanks for reading!
Main elements of the chart:
a) The price is against a resistance level + Lower trendline of the flag pattern (bigger white structure) + Lower trendline of the inner descending channel.
b) Generally speaking, every time we find this level of alignment between technical elements, we tend to observe good reactions.
c) So, should we BUY? No, remember that you should always use confirmations or filters before taking action. In this case, we want to see a bounce + small correction on the edge of the inner descending channel. If that happens, we can think about trading towards the higher trendline of the flag pattern (bigger white structure)
d) What are the targets I can expect? We have two to propose. The first one is the higher trendline of the Flag pattern, and the second target is the resistance level at 130.00
e) Speaking about duration, we can expect a 50 to 70 days movement for a full movement like the one we are expecting
f) We also have defined a red horizontal line that represents an invalidation level for this analysis. That means that we will assume that the price broke the current level, and we should expect bearish pressure until the next support level.
Thanks for reading!