ARK has been on a gradual slide over the past while. Has threatened to break the downtrend more than a few times but has ultimately failed and now there are a few likely points where it could rebound or continue to fall.
- Key fib levels have corresponded to where support has been found during the current dip.
- Today was the first time during this dip that an hourly candle closed before the 0.5 fib level. Currently the price is hovering between the 50 day average and the 0.5 fib level so it could either rebound at the 50 day, or fall through that support.
- If it fails, expect it to move down towards to the 0.618 fib level and look for support and a possible rebound.
- Again, if it fails here could move down towards the 100 day support/0.786 fib level which corresponds with a historical trend line.
Takeaways:
- If there is a significant rebound from the 50 day and we get some candles closing north of the 0.5 fib level, it could mark the start of an upward trend if RSI and Volume support it.
- If it falls below the 50 day, look to see if it rebounds or continues to fall at the 0.618 fib level; respond accordingly.
- If candles start to close below the 50 day, look for a rebound at the 100 day.