Ming Jong Tey
Independent Analyst
One of the growth stocks proxy that I track is Cathie Wood’s ARK Innovation ETF (Ticker Symbol: ARKK). A month ago (when I first covered rotation back to growth) I mentioned that the outlook is still not clear and ARKK needs to commit above the intermediate resistance around 115 to continue to trend up. Refer to the daily chart for ARKK below:
Despite having a few reactions from the resistance 115, ARKK showed bullish characters and successfully overcome it and tested the upper part of the trading range at 130.
Right now it is having a reaction after a few rejections from the resistance at 130. Supply is generally on the low side and the reaction is not yet threatening. As the reaction is still unfolding, it is essential to keep monitoring and wait for confirmation. I anticipate supply absorption pending a breakout of the resistance and trend higher to test 140, 150. This will definitely violate the bearish case of a Wyckoff distribution that some analysts advocate for.
For the time being, tech and growth stocks (or the oil stocks) could still outperform the market. Check out these tech stocks set to rally up with potential big gains ahead. Watch the video below:
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