I wasn't bearish enough on $ARKK, going to $22 before bouncing
Updated
ARKK is complete garbage with many of the stocks in the ETF now breaking to fresh lows. I originally thought we'd bottom in the $45 range (you can see how that panned out in the previous analysis below), but it turns out I wasn't bearish enough. Now, I think we're likely to see a capitulation move down to $22 before it starts to recover.
If we look at the chart, ARKK broke through it's final support and now the only thing that can hold it up is the minor support at $35 that's already been tested multiple times. Because of that, the support is weak, and if it breaks that support, there's nothing keeping it from freefalling down to $22. ~50% drop from here? I think so.
If you're already long in this, set a stop under $35 to prevent yourself from losing a lot of money quickly.
If we look at the chart, ARKK broke through it's final support and now the only thing that can hold it up is the minor support at $35 that's already been tested multiple times. Because of that, the support is weak, and if it breaks that support, there's nothing keeping it from freefalling down to $22. ~50% drop from here? I think so.
If you're already long in this, set a stop under $35 to prevent yourself from losing a lot of money quickly.
Note
Think we're about to see the final capitulation. We've now rejected the $35 resistance and there's a lot of air below.
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