Projecting Higher Prices For ARKK
by Mike Paulenoff
July 31, 2022 • 1:50 AM EDT
Back on July 17, with ARKK trading at 44.22, Mike Paulenoff commented:
"ARKK (Cathie Wood ARK Innovation Fund) ... my attached 4 Hour Chart shows the price structure has carved out a May-July Rounded Bottom formation that is putting upward pressure on a key resistance zone from 46.70 to 48.12, and if hurdled, will trigger upside projections to 58-60..."
Since then ARKK in fact climbed to a new 7-week recovery high at 49.34 but failed to follow through on the upside to confirm a multi-month breakout largely because of sharply negative earnings reactions from two major fund components, COIN and ROKU.
Despite dumping her position in COIN and girding through a plunge in ROKU (adding to her position last Friday), Cathie Wood nonetheless remains steadfast in her belief that growth stocks (ARKK) will begin to outperform value stocks as the major indices exit a bear market.
Mike's technical work concurs. Although ARKK has suffered a couple of intense body blows lately (COIN and ROKU in particular), Mike points out that the price series of higher-lows and higher-highs since the May 12 major corrective low at 35.10 remains intact and the dominant influence on the stock. As long as any forthcoming weakness is contained above 42.00, the multi-month accumulation pattern projects higher prices for ARKK, into the 58-60 target zone in the weeks ahead. ARKK closed at 44.93 last Friday.
Join Mike and MPTrader members for their ongoing analysis and discussion of ARKK and many other individual stocks, macro indices, ETFs, currencies, commodities, Bitcoin, and precious metals.
Mike Paulenoff is the author of MPTrader.com, a real-time diary of his technical analysis & trade alerts on
ETFs for precious metals, energy, currencies, and an array of equity indices and sectors, including international
markets, plus key ETF component stocks in sectors like technology, mining, and banking.
Sign up for a Free 7-day Trial!
More Top Calls From Mike
On December 13, 2024, with NVDA trading at 132.54, down 13.3% from its All-Time High at 152.89 (11/21/24), and bearing down on a critical 8-week support plateau at 131-132, this is what I posted to MPTraders:NVDA Update: Approaching key support in the vicinity of 132 that if violated and sustained, could unleash the downside potential derived from a two-month top formation (everyone sees the Head and Shoulders formation by now).
Friday afternoon, fifteen minutes before the closing bell in the equity indices, this was my parting comment about Bitcoin:Heading into the weekend, the technical setup argues against holding shorts in Bitcoin... no?...
Many of you have been members of MPTrader for years, perhaps decades (I have been providing MPTrader.com analysis since February 2003!). Rarely do I take a victory lap about my stock, ETF, and market calls, largely because I have always thought my work should speak for itself, which obviates the need to bloviate and beat my chest to stroke my ego. At my core, I am a market nerd and Geek, not a slick-talking marketer (for better or worse).
Back on November 12, 2024, fellow MPTrader member "Rayray" wrote the following when ARCH (Archer Aviation) was trading at $4.83:Mike, as you may recall I have been an active follower of ACHR. I no longer have a position that I trade off of and am on the sidelines watching a move that I should have participated in . That said, is this the move to $9.00 that has been on the table for a while ?... My analysis: NO!...
On the morning of Tuesday, November 12, 2024, I posted the following Heads-Up to MPTrader members concerning my DIS (Disney) analysis ahead of earnings:DIS (Disney) reports earnings on Thursday morning. Technically, DIS approaches Earnings in strong near-term technical condition that argues for a positive reaction to earnings. As long as any forthcoming weakness is contained above 94.80, DIS points higher to 105.10/40, and if taken out, then to 113-115... Last is 100.25...
