Eyes on Innovation $ARKK – November 7, 2023
This is Scott with your Chart of the Day. I want to take a look at the ARK Innovation ETF ( NYSEARCA: ARKK ).
ARKK ( NYSEARCA: ARKK ) is the ARK Innovation from Cathie Wood’s ARK Invest, and this has just been massive the last week or so, as it has had a huge rebound off the lows. If I flip to the weekly chart you are going to see one of the biggest weekly bullish engulfing candlesticks this chart has seen in a long time.
It did it on higher than average volume after just relentless selling, really, since the beginning of July. It has been choppy and sloppy since July, with a nice bullish engulfing rebound last week. And this week we seem to be firming up right around the blue line here, that’s the 200-day moving average.
I, definitely think we want to keep an eye on ARK Invest ( NYSEARCA: ARKK ) for a potential rebound continuation. Maybe a retest of the highs from back here at around $45.00. Now, while this does have some gaps that are a bit scary if you are a trader that looks for gap-fills to the downside, I like the fact that ARK Invest ( NYSEARCA: ARKK ) is holding up at least around a local area of support.
If you do look to buy this, maybe with a break and continuation above the 200-day moving average, at least you have a stop right around that $39.00 level, just in case this turns out to be a false rally and it fills those gaps to the downside. I think you have a pretty tight risk/reward here with ARK Invest ( NYSEARCA: ARKK ) and I, definitely think this one should be on your watch list.
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