ONE44 Analytics where the analysis is concise and to the point

Our goal is to not only give you actionable information, but to help you understand why we think this is happening based on pure price analysis with Fibonacci retracements, that we believe are the underlying structure of all markets and Gann squares.

For the ONE44 Fibonacci rules and guidelines to help with this article, go here.

This is our latest video in an ongoing series of how to use the Fibonacci retracements. Even if you do not trade the market covered, the ONE44 rules and guidelines are the same, as we believe the Fibonacci retracements are the underlying structure of all markets.

https://youtu.be/HEyLVbjvHDg

Charts are courtesy of Barchart.com

ARK Innovation ETF

(ARKK)

In our last post on 1/3/22 titled,

Here's what it's going to take to get ARKK to float again
We left you with this, "In short, below 104.40 we are looking for 81.60, above it 116.00, once they get above 116.00, ARKK is floating again!"

We also explained that when following the ONE44 Fibonacci rules and guidelines, 81.60 was the target, because it had failed to hold 38.2% (the long term swing point) and when this happens the next target becomes 61.8% (81.60). So what now? Well using the same guidelines we know that holding 61.8% can send it 61.8% back of where it just came from and this is 130.00. This is obviously our long term target and as always we watch all the retracements on every move to see just how strong, or weak the market is, regardless of the long term target.

This market still has a lot to overcome to turn the trend positive again, it is below the 200 day average (114.40) and below the short and long term swing points. The first real test on a rally from 81.60 will come at 99.25, this is 23.6% back to the ATH and 38.2% back to the 6/30/21 high. A failure to get through this level keeps the trend very negative. Using the 38.2% golden rule, we know a market must hold 38.2% to keep the trend intact, so it will need to take out 110.50 to turn the short term trend positive again. Not getting much of a rally  from 81.60 and a close below it should send it to 61.8% of the ATH and ATL, this is 70.00.

In short, above 81.60 the short term target is 99.25 and below it, look for 70.00.

If you are looking for option plays to go with our levels, we highly recommend going to the Barchart webinar library where John Rowland has plenty of information on Option strategies.

Here is one, Using the Long Strangle Options Strategy for Opportunity Trades

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FULL RISK DISCLOSURE: Futures trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Commission Rule 4.41(b)(1)(I) hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not actually been executed, the results may have under- or over-compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. Past performance is not necessarily indicative of future results.