Today, we will look at ARKK, one of my favorite assets to trade.
What can we see right now? The price made a new local low last week, which took us to a 42% decline since the previous ATH on February 2021.
As you can see, this scenario already happened in the past, and ALL the time, we saw new ATH coming after that. That's why it's important to define what I will be expecting before taking new bullish setups on Cathie Wood's ETF.
The main element I want to pay attention to is the current descending trendline. Below that level, I will assume that I'm not in a solid situation to develop setups. Therefore, I want to see a breakout of it FIRST.
Most of the time, getting great opportunities is a matter of patience, and the most important thing is that we can't force the market to provide us with an opportunity; we can only wait. And, at the moment, the price is on a clear bearish trend, far from our filter. So, this post is more about "what I will not do" rather than what I'm expecting. So, my conclusion here is:
Until I don't see a breakout of that descending trendline, I will not risk my capital, and I will keep waiting. Let's see how much time we should wait for that to happen. Maybe a couple of months.
Thanks for reading, and feel free to add your view or charts in the comments.
What can we see right now? The price made a new local low last week, which took us to a 42% decline since the previous ATH on February 2021.
The main element I want to pay attention to is the current descending trendline. Below that level, I will assume that I'm not in a solid situation to develop setups. Therefore, I want to see a breakout of it FIRST.
Most of the time, getting great opportunities is a matter of patience, and the most important thing is that we can't force the market to provide us with an opportunity; we can only wait. And, at the moment, the price is on a clear bearish trend, far from our filter. So, this post is more about "what I will not do" rather than what I'm expecting. So, my conclusion here is:
Until I don't see a breakout of that descending trendline, I will not risk my capital, and I will keep waiting. Let's see how much time we should wait for that to happen. Maybe a couple of months.
Thanks for reading, and feel free to add your view or charts in the comments.