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
Well before the Artificial Intelligence (AI) hysteria was unleashed this past Thursday by the shockingly powerful earnings report from Nvidia (NVDA) that reset expectations for the growth and revenue potential of AI, our technical pattern analysis of MRVL provided an early heads-up for MPTrader members.
Just after the start of the New Year, on January 9, Mike Paulenoff posted the following missive to MPTrader members about EWJ (Japanese Country Fund ETF):In my reading and research this weekend, my eyebrows did a bit of a backward roll when I saw the budding technical setup in EWJ.
On April 21, AAPL climbed to a new 8-month recovery high of 168.16, representing a 35% gain from the January 2023 low. We alerted MPTrader members to the new high in AAPL, but attached a yellow caution flag to the update:"AAPL continues to intrigue me technically because the stock hit a new multi-month recovery high at 168.16 on Wednesday -- 35% above its Jan 3rd low, but stalled right at its 15-month resistance line that cuts across the price axis in the vicinity of 168.
On March 20, I posted the following technical alert to MPTrader members:"FCX (Freeport-McMoRan)-- Technically, let's notice that FCX appears to be in the U-Turn phase after the completion of a 7-week 25% corrective period that successfully tested the 200 DMA last week. If the commodity complex has fully corrected its post-pandemic-inflationary spiral bull phase (think Crude Oil, down 46% from its 2022 highs), then FCX with its concentration of Copper, Gold, Silver, and Oil is poised for a resurgence of strength...
At the close of Q1, 2023, the big-cap technology names recorded the following very impressive 3-month gains: NVDA +90%, META+76%, TSLA+68%, CRM +50%, AAPL+27%, MSFT+21%, and GOOG+18%.
