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Does ARK Innovation Have Downside Risk?

BATS:ARKK   ARK Innovation ETF
The ARK Innovation ETF has chopped in a range for the last two years, and some traders may expect a push back to longer-term lows.

The first pattern on today’s chart is the rounded top in February and March. It was slightly below the peak of December 2023. The lower monthly high may suggest bears remain in control over the longer term.

A sharp drop in early April followed the topping pattern. That may add to the possibility of sellers taking control.

Second, Wednesday’s bounce retraced about half the decline. A lower high at this spot could confirm a downward move has begun. Prices also stalled at the February 5 low. Has old support become new resistance?

Next, ARKK is back below its 200-day simple moving average.

Finally, MACD has been falling.

Standardized Performances for ETF mentioned above:
ARK Innovation ETF (ARKK):
1-year: +24.2%
5-years: +1.97%
Since Inception: +11.35%
(As of March 28, 2024)
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