Is the bearish trend finished? ARKK.Today I will share my view on Cathie Wood's ETF and the pending setup I have.
* The main structure of the current situation is the yellow descending channel , where we have been observing several contacts there.
* The confirmation for me to start thinking about bullish opportunities happened when the inner descending channel was broken.
* After that, I decided to wait for 4 days of corrective movement (which had already happened) and define activation levels on a new high. (green horizontal line)
* The invalidation level or stop loss for this situation, if the price reaches my activation level, is 62.00. I will consider that my view was wrong; therefore, I close my position on a 1% loss.
*If the previous scenario is true, I will make a re-entry on a new local high, following the same concept as before.
*I'm doing this because I think the upside potential is really good ( target on the end of the green arrow ), which provides a risk to reward ratio of around 4.5. That's why I have a re-entry plan; even if I'm stopped out 3 times until I can catch the real movement, the setup would still be profitable.
Thanks for reading; feel free to share your view and comments on the chart.
