The Cathie Wood-led ARK Innovation ETF (NYSE:ARKK) was slipping about 0.6% Monday on lower-than-average volume, possibly due to Coinbase Global, Inc’s (NASDAQ:COIN) retracement, the latter which is the largest holding within the ARKK fund.

ARKK has slid almost 10% since Nov. 7, when the ETF rejected the 200-day simple moving average (SMA) as resistance and began to retrace. The retracement followed a 21% surge in ARKK between Oct. 30 and Nov. 7, however, which has settled the ETF into a possible bull flag pattern on the daily chart.

Must Read: Early Believer In Tesla And NVIDIA, Cathie Wood And Her Firm Changed Modern Investing - Just What Does ARK Invest Offer?

The bull flag pattern is created with a sharp rise higher forming the pole, which is then followed by a consolidation pattern that brings the stock lower between a channel with parallel lines or into a tightening triangle pattern.

For bearish traders, the "trend is your friend" (until it's not) and the stock may continue downwards within the following channel for a short period of time. Aggressive traders may decide to short the stock at the upper trendline and exit the trade at the lower trendline.

Traders looking for leveraged long exposure to ARKK may choose to play the AXS 2x Innovation ETF (NASDAQ:TARK). TARK is also forming a bull flag pattern but under the 50-day SMA.

TARK is an actively managed 2X leveraged ETF aiming to return 200% of the daily performance of ARKK and was shooting up over 6% on Tuesday.

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The ARKK Chart: The measured move of ARKK’s bull flag is about 20%, which suggests the ETF could surge up toward the $46 level in the future. Bullish traders want to see big bullish volume come in and break the ETF up from the descending trend line of the flag, which would likely cause ARKK to regain the 200-day SMA as support.