Zooming Out: Why ARKK Could Surprise in 2025

With the fourth quarter officially underway, it’s time to start looking for stock setups with potential as we head into the end of the year and into 2025. One name that has been the subject of heavy scrutiny is Cathie Wood’s ARK Innovation ETF (ARKK). It’s no secret that ARKK has been under the microscope, especially after its meteoric rise and subsequent pullback. But here’s the thing—sometimes the best opportunities come from the places people aren’t paying attention to anymore.

When you zoom out and take a look at the monthly and weekly charts, ARKK is starting to show some very interesting signs. It’s why multiple time frame analysis is a critical tool for traders. As the legendary trader Jesse Livermore once said, “The big money is not in the individual fluctuations but in the main movements.” And those main movements can often be spotted only when you step back and look at the bigger picture.

ARKK Monthly Chart: Testing the Waters

Let’s start with the monthly chart. ARKK has been trying to establish a base and keeps testing this down trendline. There’s been no confirmed breakout yet, but if this ETF can hold above $46.50, there’s a real shot that longs could target $66.50 heading into 2025.

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Multiyear Base in the Making

On the weekly chart, we’re looking at a nice multiyear base forming. This base is pressing up against a strong resistance zone between $52-$55. Here’s what’s critical: ARKK needs to break above the All-Time High AVWAP sitting at the top of that base. If that happens, this setup starts to have a lot of promise moving forward.

Downtrend and the Rising 50SMA

The weekly chart also shows ARKK testing a long-term down trendline, and we’ve got a rising 50-day moving average providing some tailwind here. This could help propel ARKK out of its current range if momentum kicks in and break through this down trendline.

Conclusion: Keep ARKK on Your Radar

While ARKK has faced significant headwinds, this is a name to keep on your radar as we head into the end of the year. Sometimes, the most overlooked assets are the ones that end up making the biggest moves when the market shifts. With the base formations happening on both the monthly and weekly charts, ARKK could have a breakout moment. And as Livermore taught us, it’s the long-term setups that often yield the greatest results.

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