Is Cathie Wood's ARKK a Bottom? Here's an Eye on the Chart

Is Cathie Wood's ARKK a Bottom? Here's an Eye on the Chart ...

Get ARK Innovation ETF Reporthas held investors'' attention for several years as the covid-19 epidemic struck. It was much more severe when the pandemic struck.

Cathie Wood, the manager of the company, came to prominence for her bullish views on Tesla (TSLA) - Get Tesla Inc Report. The electric-vehicle manufacturer was an intense battleground stock. After the bulls won out and Tesla pushed for a market cap of $1 trillion, Wood was well-known for her correct call.

That and the rush to growth stocks caused her Ark ETF products to surge in inflow, with the world''s largest financial institution, ARKK, getting the most of attention. From the Covid low to the February 2021 high, the stocks nearly fell.

In a hurry, Wood & Co. have gone from famous to famous, as the ARKK ETF has dropped about 80% from that high to last weeks low.

ARKK might start laying ground right now.

Trading ARKK Stock

ARKK''s Weekly Chart. has created a chart.

The weekly map below reveals a few important areas, perhaps most notable being the $33 to $35 range.

In the fourth quarter of 2018, market participants saw a substantial Fed selloff. It was also support during the covid selloff in 2020.

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Otherwise, this has been the lowest of the range for the previous four years, while $50 has acted as a sort of loose level of resistance. That was until ARKK suffered a noticeable breakout in 2020.

ARKK had risen 5.6 percent on May 13; on May 13, it closed 12% higher. In total, the ETF had increased by more than 24 percent from May 12''s low to May 13''s close.

On May 16 at the end of the check, it fell about 3.5 percent, which isn''t really bad due to the spike we''ve seen in the past few days.

It is currently down near $45 and struggling with its 10-day moving average. Its only natural after such a big drop.

ARKK finished the week down for the sixth week in a row, but it has been closed at the weeks high. It gives us the possibility for a weekly-up shift that is greater than $45.

If this happens, and the ARKK does not reverse lower, we might be looking at a $53.

There are a few measures, particularly the May high and the 10-week moving average. ARKK hasn''t tested the latter in more than six weeks.

If it blows through that level, then we may be looking at a potential boost into the mid-$60s, where ARKK is seeing its 23.6% retracement and a 21-week moving average.

Keep an eye on this significant $33 to $35 area if we never have a weekly-up rate of $45.

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