A fatal combination for the markets in the short term: hyperinflation and now the war in Ukraine. We will see in the coming days how it will evolve both from the side of Western repercussions and how central banks intend to behave. Our SHORT operation on ARK Innovation ETF once again went to target.
The ARK Innovation ETF, after strong performance in 2020, started an equally strong underperformance compared to the sector benchmarks. The picture of weakness seems to persist and the ETF also pierced the Fibonacci retracement of 61.8% of the entire bullish trend which started in March 2020 and which reached the top on February 16, 2021. Recall that the break of 61.8% makes reversal of the main (bullish) trend more likely. It therefore becomes an ETF you can go short on. We have already closed the first short strategy on this ETF with the target taken at $70. The strategy implemented on February 16 also hit the target of $64. In the last few days we have extended the strategy up to the key support at $60 and the ETF did not disappoint us. Now you can make a profit and get ready.
We recommend going SHORT on the ETF only at the closing break of $60 by buying the Leverage Shares Short -3X ARK Innovation ETF (ISIN: XS2399368906), with an increase in returns towards $60, with a short-term target of $55 and then $50. Alert/stop loss should be above $65.