The Unfolding Story of AXS 2X Innovation ETF (TARK)
At first glance, the AXS 2X Innovation ETF, trading under the ticker symbol TARK, appeared to be moving sideways within a large symmetrical triangle pattern on Tuesday. This technical pattern has captured the attention of traders and investors eager to see if the ETF will break up or down from the formation.
Riding the Coinbase Wave
The recent surge in Coinbase Global, Inc, the largest holding within ARK Innovation ETF managed by Cathie Wood, has provided a strong backbone for both ARKK and consequently TARK. Coinbase’s impressive 124% rally from February 7 to date has helped maintain ARKK and TARK within a consolidation phase.
Resilience Amidst Market Fluctuations
While Tesla, Inc, and Roku, Inc, two other top holdings of ARKK, have faced challenges with each plummeting approximately 30% since the start of the trading year, TARK has managed to hold above the 50-day simple moving average since March 6. This resiliency, coupled with a recent “golden cross” on TARK’s chart on December 22, indicates a potential bullish trend for the ETF.
The Crucial Apex and Future Prospects
With TARK poised to reach the apex of its symmetrical triangle on March 18, traders and investors are keeping a close eye on the ETF. A breakout from this pattern on increased volume could signify a more defined direction for TARK in the days ahead.
- If TARK succeeds in printing a hammer candlestick on Tuesday, it may signal a local bottom and potential upward movement on Wednesday, thus indicating a bullish trend.
- Conversely, significant bearish volume may push TARK below the lower trend line of the triangle, potentially triggering a downtrend. This could jeopardize the support at the 50-day SMA, leading to further tests at the 200-day SMA.
- Key resistance levels lie at $86.10 and $93.20, while crucial support is found at $77.20 and $65.46.
Final Thoughts on TARK
As investors eagerly await the unfolding of events surrounding TARK and its potential breakout, the ETF’s recent performance within the symmetrical triangle reveals both promise and uncertainty. With the winds of change blowing in the market, TARK stands at the cusp of a critical juncture, with its future direction swaying on a delicate balance between bull and bear forces.
