Linear regression analysis
- ARKK's current bull trend beginning on MAR 18 2020 has been well identified
- A trend pulled to current date gives a Pearson's R maxed at 0.97634... indicating a strong correlation
- Current price is sitting at +3 standard deviations ( SD ) above mean
- divergence identified from DEC 23 2020 - JAN 15 2021 levels
- As per my own strategy, I overlay levels on my indicator
- Previous observations indicate that a price break below the 0.618 level corresponds to a break of identified areas of support when found with a divergence of price action
- Support at range of 48-52 could correspond with a retest of some region of price action support
As price action continues to make higher highs and continue to make lower highs, I am looking for a pullback or potential correction to coincide with a potential mean reversion. Using divergence as a signal, I have a higher degree of confidence that this will occur.
Using /retracement levels as well identified areas of as they correspond to mean and SD areas, key areas of support appear to be at approximately $141.50, $138, and $131.
I will be watching price action over the next few days to watch for confirmation or rejection of this analysis as is still in a range and could certainly continue to push price higher and invalidate the currently observed possible divergence signal. A move and breakout of ATH could see a move to $156.
Support found at $138.
Closed short positions just before market close on JAN 27.