Today I will update my view on ARKK from the previous post I made.
I found it super interesting to see how one of the most renowned assets in the post-pandemic era has erased ALL its gains from the beginning of the bear market back in February 2020 until now.
From a logarithmic perspective, we can see that the current decline is the deepest one and almost doubled previous declines.
Now I would like to go into technical elements and the situation where we may have interesting trading opportunities.
I am still paying attention to the internal descending trendline. Trendlines are incredible tools to help you avoid getting into the market at the wrong moment. For example, here, the descending trendline can be interpreted as "Below the trendline, avoid bullish setups. Above the trendline, start thinking in bullish setups."
But that's not all; I don't want to see a breakout of the descending trendline only. I want to observe a clear correction with the proportions you can see on the circle. IF that happens, I will trade on a new local high towards the higher zone of the descending channel. If nothing of that happens, because the price keeps falling into the ugliest correction of all, I would stay on the sidelines until the technical elements confirm that we are in a good situation to develop setups.
Thanks for reading; feel free to share your view and charts in the comments.
I found it super interesting to see how one of the most renowned assets in the post-pandemic era has erased ALL its gains from the beginning of the bear market back in February 2020 until now.
From a logarithmic perspective, we can see that the current decline is the deepest one and almost doubled previous declines.
Now I would like to go into technical elements and the situation where we may have interesting trading opportunities.
I am still paying attention to the internal descending trendline. Trendlines are incredible tools to help you avoid getting into the market at the wrong moment. For example, here, the descending trendline can be interpreted as "Below the trendline, avoid bullish setups. Above the trendline, start thinking in bullish setups."
But that's not all; I don't want to see a breakout of the descending trendline only. I want to observe a clear correction with the proportions you can see on the circle. IF that happens, I will trade on a new local high towards the higher zone of the descending channel. If nothing of that happens, because the price keeps falling into the ugliest correction of all, I would stay on the sidelines until the technical elements confirm that we are in a good situation to develop setups.
Thanks for reading; feel free to share your view and charts in the comments.
