Not quite time to board the $ARKK…but it bears watching. (August 26, 2021)
ARKK
I want to look at Ark Innovation ( NYSEARCA: ARKK ) today. Everybody, not everybody but perhaps you, always wants to kind of see what this is doing. It was 2020’s major massive high flier and it is still kind of in consolidation. You guys probably know the story here, you should.
Anyway, this is why I am looking at this, this stock is really starting to set up. It’s not quite there yet.. If you just look at this stock and compare it to the typical breakouts what you tend to see is what I call a pinch and pop. Where the stock is forming lower highs and a lot of times higher lows, it’s not really doing that here, it’s really kind of forming a flat bottom.
If this stock is going to go higher this is probably what you are going to see. You are probably going to see the stock pull back down. Remember, this is the 50-day moving average, that’s the line of demarcation between bulls and bears, between buyers and sellers. And so you will see the stock maybe even come up to test the 50 again. But then each time it does that, this down-trending line gets tighter and tighter when compared to this one. Then finally, boom, you are going to get a breakout.
The reason I am looking at Ark ( NYSEARCA: ARKK ) is because it is not there yet, but what you want to be doing is, you want to be looking at stocks that are almost there and then tracking them every day. If you see something that is just about right for you, then you go ahead and set an alert.
This is one that I just have on my list of trending stocks setting up. That’s what it is and, frankly, I think I am kind of violating my own rules, as far as calling this a trending stock because it’s really not trending. I am just looking at the 200-day moving average and also I know what this stock or ETF does. And so it’s like I kind of don’t want to take it off the list,
Anyway, I like the way this is setting up. Frankly, I would wait until it hit above this, about 127.00 or so, before taking a small position in it. It has to go back above the 50, it has to stay there, and it has to do it on pretty good volume.
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