Chart of the Day - Tuesday, July 11, 2023

Today’s Chart of the Day was shared by John Roque (@daChartLife). The ARK Innovation ETF ($ARKK) broke out to 10-month highs today after clearing resistance at $45. John points out the 40-week moving average has begun to slope higher recently as $ARKK transitions from a Stage 1 basing phase into a Stage 2 uptrend. Others have pointed out that $ARKK has formed a bullish inverted head & shoulders pattern over the past year. The next thing bulls want to see is new 52-week highs, which would be achieved by closing above the August peak (around $52). It's still in a -70% drawdown, and it would need to gain +230% from here to return to its February 2021 high. However, all signs point to further upside in the near term for this former market darling.