Cathie Wood's ARKK Is Finally Looking Like an Upside Vessel

Despite market watchers forecasting Wood's demise, the ARK Innovation ETF is showing positive signs.

The ARK Innovation ETF (ARKK) has been the punching dummy for stock market bears. The ETF is the brainchild of Cathie Wood and Wood is probably one of the most recognized faces of Wall Street.

Despite the various market watchers forecasting Wood's demise the ETF made a low in late December and a higher low in early May.

Let's check further.

In the daily bar chart of ARKK, below, I can see some improvement in the price action and in the indicators. The shares are now trading above the rising 50-day moving average line and above the bottoming 200-day line.

The On-Balance-Volume (OBV) line has moved similar to the price action with lows in December and May. The now-rising OBV line is a sign that buyers of ARKK are being more aggressive than sellers. The Moving Average Convergence Divergence (MACD) oscillator is bullish.

 

In the weekly Japanese candlestick chart of ARKK, below, I can see that the shares have made a huge tumble but it has been followed by a new base pattern. Prices have been moving sideways with increased trading volume.

 

The weekly OBV line shows a rise from December. The MACD oscillator is trying to move above the zero line.

 

 

In this daily Point and Figure chart of ARKK, below, I can see an upside price target in the $59 area.

 

 

In this weekly Point and Figure chart of ARKK, below, I can see the same upside price target of $59.

 

 

Bottom-line strategy: Aggressive traders could go long ARKK at current levels. The $59 area is my target.

 

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