ARK Innovation ETF looking for support at zero

23

February 2021

By

Alex Cole

ARK Innovation ETF has pulled back over the last few days as the market itself has stumbled.

Price on the Cathy Wood ETF has moved lower over the last week as evidenced by the paler aqua "Go" bars.  This will of course happen throughout a trend as price takes a pause after moving higher.

What is important is to look to see if this correction can be used as a good entry into the trend or if the correction leads to more downside risk.  We will look to the GoNoGo Oscillator in the lower panel to see if the zero line can hold as support.  If it does, as it should in a healthy "Go" trend, then we will see a trend continuation green circle under price when the oscillator regains positive territory.

If the GoNoGo Oscillator cannot hold the zero line, and breaks into negative territory, that would indicate excessive selling, and would be a cause for concern regarding the current "Go" trend.