ARK Innovation’s profits suffered last year due to recession fears and rising interest rates. However, ETFs rebounded in 2023 as interest in top-tier stocks, including Tesla, returned. (TSLA)- Get Free Report.
Can the ARK Innovation ETF continue its rally or has it hit a new high of the year?
It’s been a rollercoaster for Ark Innovation investors
ARK Innovation’s focus on fast-growing technology companies was ideally suited for the post-COVID-19 easy money era. Thanks to the ubiquity of work-from-anywhere technology and low interest rates that have made it easier for unprofitable companies to finance growth, the ETF jumped a staggering 384% from its March 2020 low to its February 2021 high. made a reasonable profit.
Do not miss it: Kathy Wood is betting on two of Ark’s big names
These returns have made Kathy Wood famous among investors. Her stock picks were tracked daily, and her tendency to make bold predictions about the future of stocks she owned, including Tesla, was widely reported in the financial news media.
However, not everyone was convinced that ARK Innovation’s aggressive growth approach would yield lasting benefits. The post-coronavirus surge has pushed valuations of many of the company’s holdings to foamy levels, and investors rallied when recession fears and rising interest rates sparked a stock market bear market last year. suffered heavy losses. The ARK Innovation ETF has fallen nearly 82% from its 2021 high to December 2022.
Those losses still plague many investors, but the return of interest in top stocks, including Tesla, caused the ARK Innovation ETF to rebound in 2023. Kathy Wood made headlines earlier this year with new research suggesting that using Tesla cars as robo-taxis could be profitable. Tesla worth $2000 per share.
Year-to-date, the ARK Innovation ETF is up more than 36%.
- Why Tesla stock is soaring and future possibilities
- Elon Musk’s latest Tesla announcement could shake up the entire EV industry
- Elon Musk talks ‘purity’ about his motivation for revolutionary EV trading
ARK Innovation stock chart sets new target price
Technical analysis provides insight into the aggregate sentiment of all market participants. For this reason, charting stock price movements can help investors spot problems early. Charts, especially point-and-figure charts, also help investors set price targets.
recently, real money Technical analyst Bruce Camich, who has been helping professional investors for over 40 years, has reviewed the ARK innovation charts for insight into what happens next.
After considering the ETF’s price action, volume trend, and momentum, Kamich used a dot-and-number chart to calculate a price target that investors might want to focus on.
“ARKK is trading above the bottom 40-week moving average. The OBV line has shown strength since November. The MACD oscillator has just broken above the buy signal zero line,” Kamich said. writing. “ARKK’s weekly point-and-figure chart shows an upside target in the $59 region.”
On-balance volume is the cumulative volume up to the down date, while moving average convergence divergence measures momentum using different moving averages of the stock price.
If Kamich’s price target is correct, the ARK Innovation ETF could rise another 30%. However, point-and-figure charts don’t provide a timeline for when that will happen. Stock prices don’t go up or down in a straight line forever, so given ARK Innovation’s big gains to date, we can at least expect some backfilling at some point.
Kamich suggests that ARK Innovation’s chart will remain where the stock is above $41, so keep that as a line in mind if you go long the ETF.
https://www.thestreet.com/investors/cathie-woods-ark-innovation-etf-gets-a-surprising-price-target Kathy Wood’s ARK Innovation ETF Hits Surprising Price Target