Base-building for ARKG

Question: ARKG is improving, is it ready to breakout? Thank you.

Yes, the ARK Genomic Revolution ETF (ARKG) is improving and position for a future breakout from a basing/bottoming pattern dating back to late 2023. In addition, ARKG shows bottoming signs relative to the S&P 500 from late 2024 into early 2026. Breaking out from this pattern would continue ARKG's leadership trend from May 2025.

Holding above or within the zone of improving weekly moving averages from 29.98-28.49 down to 26.67, with chart support (aka a higher low) near 26, would maintain this constructive pattern. We would prefer the upper end of this range to hold.

A decisive breakout above basing pattern neckline resistance at 34.06-34.37 is the signal needed to confirm the late 2023 into early 2026 bottoming formation and suggest further upside to 38.97 (July 2023 peak), 43.88 (August 2022 peak), and 51.00-54.80 (pattern count and 38.2% retracement of the early 2021 into early 2025 decline).

The 50% and 61.8% retracements at 66.32 and 77.85, respectively, provide additional upside projections.

Chart 1: ARK Genomic Revolution ETF (ARKG) (top) and relative to the S&P 500 (bottom)