ARKK potential Breakout to 66 - 70s before new year !
After an impressive climb, ARKK’s price has paused near $56.21, forming a classic bull flag pattern. This is a textbook signal: a strong initial rally followed by sideways consolidation, often hinting at continuation in the direction of the previous trend. The trendlines reveal the ETF is compressing, building energy like a coiled spring.
The moving averages are lined up perfectly for bulls. The short-term yellow moving average is trending well above the long-term blue one, confirming the strength of the upward momentum. This tells us the battle-tested bulls are still in control, with the bears retreating to lower ground.
The RSI is sitting at 70.14, signaling strength. While some might see it as "overbought," seasoned traders know this is where momentum players thrive. The ETF’s ability to hold this level without significant pullbacks shows strong buying interest from institutions and retail traders alike. It’s like a crowd gathering behind the archer, ready to release the bowstring.
The MACD histogram is glowing green, reinforcing the narrative that buyers are still active. As the histogram bars hold steady, there’s no sign yet of the bears staging a comeback. At this point, ARKK is testing the $58.38 resistance level, a successful breakout could launch ARKK toward its next resistance levels at $61.85 and $67.20, offering a significant upside for traders who act decisively.
Target Levels:
First target: $61.85
Second target: $67.20
Stop-Loss: Place a stop-loss just below $52.32, the key support zone, to protect against sudden reversals.
As an options trader, I’ve entered the following positions:
ARKK December 20, 2024, $70 call at a premium of $0.12 (open).
ARKK December 20, 2024, $66 call at a premium of $0.24 (open).
The moving averages are lined up perfectly for bulls. The short-term yellow moving average is trending well above the long-term blue one, confirming the strength of the upward momentum. This tells us the battle-tested bulls are still in control, with the bears retreating to lower ground.
The RSI is sitting at 70.14, signaling strength. While some might see it as "overbought," seasoned traders know this is where momentum players thrive. The ETF’s ability to hold this level without significant pullbacks shows strong buying interest from institutions and retail traders alike. It’s like a crowd gathering behind the archer, ready to release the bowstring.
The MACD histogram is glowing green, reinforcing the narrative that buyers are still active. As the histogram bars hold steady, there’s no sign yet of the bears staging a comeback. At this point, ARKK is testing the $58.38 resistance level, a successful breakout could launch ARKK toward its next resistance levels at $61.85 and $67.20, offering a significant upside for traders who act decisively.
Target Levels:
First target: $61.85
Second target: $67.20
Stop-Loss: Place a stop-loss just below $52.32, the key support zone, to protect against sudden reversals.
As an options trader, I’ve entered the following positions:
ARKK December 20, 2024, $70 call at a premium of $0.12 (open).
ARKK December 20, 2024, $66 call at a premium of $0.24 (open).
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