ARKF Analysis

Hi Folks, today we take a look at ARC F AR k f our overall markets closed relatively mixed, s&p down slightly basically unchanged, NASDAQ down almost one and a half percent in the Dow closing positive up about half a percent. So mixbag across the board. Now we are looking at a trade here in AR k f the art FinTech innovation ETF one of Kathy Woods creations, and you can see we’ve taken quite a bit of haircut here, but based almost a 50% Haircut from these highs up here $65. And now we’re trading into an area that is picking out interests. Now these yellow lines represent the monthly areas of structure. So if we come over to the monthly, you can see that this was the last area before we cause prices to sling up higher to the size of We’re now coming back down into this area as a first touch scenario. So we go back to the weekly
and look for an area that aligns with that monthly area structure. And we can see that right here because this is the area where we basically paused and then shot up to create those new highs. Now, if we take a fib tool from those last swing highs to this last major swing low down here to 17. You also see that we have a beautiful, perfect 50% retracement. So we have a 50% retracement, from Best swing high data that swing low takes us down to about the 40 half 41 mark. Now what we like to see on the lower timeframe is on the daily.
So we did our analysis there on the monthly we did our analysis on the weekly.
And now we’ve drilled down into the lower timeframe to look for slowing momentum slowing momentum from the sellers, whereas either they’re drying up, maybe you don’t have anything left to sell or we’re starting to instigate some buying interest which I think that may be the case. So we’ve come down, we’ve come down we come down. Notice we’ve got huge bars, huge bars whose bars, and now these bars are getting a little bit smaller. And we’re almost starting to kind of round have a rounding bottom here into this multiple area of structure. Now, that alone is not a buy signal per se, it does start to put it on our watch list. Now all we like to see is either a divergence signal a bullish divergence signal using one of our options tools, and or 123 confirmation. So you can see as we’ve been working our way down, we’ve tried to do one, make a 123. Bottom here, try to make a 123 Here try to make a 123. Now as we speak, that will be confirmed if we get above the 42 quarter area 42 Quarter level without taking out this low. So we came down and tested this low. Now we almost have a double bottoms we have 123. Here’s where we would be interested in buying that would take us up above the short term moving averages notice all that too, would coincide with a nice trend line break. So seems like a bit of an over analysis. Maybe it’s overwhelming. But in essence, all we’re doing here is using basic price action. And we know that we can step in with confidence. If we get our confirmations whether that’s up here. Maybe it ends up being at a lower level depending on what price action dictates. But we know that once we do make a decision to get in that our risk is going to be super tight with high reward. So our risk versus reward is going to be overwhelmingly in our favor because we’re going to be risking probably a couple of dollars
to likely make 510 Maybe 15 and even higher. So that’s what we’re going to watch. That’s kind of a full analysis there on a RK F