Hi everybody, and welcome.
Please understand that this thread is intended to discuss many stocks and indexes and futures etc.... it is not an exclusive QQQQ thread, so all charts are welcome here, even OTC and BB stocks. Still, QQQQ provides a convenient vehicle.
I'd like to cut to the chase.
Here is the chart for QQQQ:
stockcharts.com[w,a]daclyyay[dd][pd20,2!b50][vc60][iLg!Lyb20,2.0]&pref=G
This chart shows that QQQQ rallied towards resistance, and stalled at the early parts of that resistance before it got to the 50 sma. The Bollinger bands are becoming acutely contracted, and this is increasingly unstable; QQQQ must resolve this by pushing against one of the BB rails. This will be the UPPER rail, because if QQQQ pushes on the lower rail, that will require it to fail at very solid support and trade down below $34. That is extremely unlikely.
Here's the chart showing the momentum indicators.
139.142.147.218
There are early sell signals in OBV and Williams, and QQQQ is overbought and turning back from resistance from the upper rail of the regression channel.
First support to be tested below is at about $34.50. I believe the odds that QQQQ will fail at that support level are about 70% or 80% or so---i.e., very likely. If that support fails, then QQQQ will drop down to test the lower support levels established a few weeks ago. The first level is $35.00:
stockcharts.com[h,a]daclyyay[da][p][vc60]&pref=G
I think this will hold, and I will be looking for signals to flip from short to long here.
Next lower support is in the $34.50 - $34.60 region, and that is the line in the sand for sure.
T
Disclosure: I flipped from long to short QQQQ at the close Monday. |
