Hi Gush,
My opinion has been wrong as you know for several sessions now, but it has not changed. I see nothing that indicates there will NOT be a pullback. The fact that this has been delayed only suggests to me that the severity of the pullback might well be more than modest.
I see support levels as follows:
First, there is the chart support now at $38.00, which I believe will fall at any time.
As QQQQ descends below the $38.00 mark, there is really no significant support that I can see until you get to chart support at $37.00, and this is not strong support.
Below that, there is a zone of increasingly solid support spanning a $0.22 range from $36.66 to $37.88. This support comes from the following sources, in descending order:
100 sma: $36.88
200 sma: $36.78
20 sma (middle of the BBs): $36.66
I believe this support region will hold, with a close no lower than the 20 sma, and intraday at least the 20 sma will get hit.
Below that, there is:
50 sma: $36.20
Chart support: $36.00
Chart support: $35.00
Lower BB: $34.64
I don't think these lower levels will get tested.
Keep in mind that most of these support levels will change somewhat with time, but the region between the 20 sma and the 100 sma will probably tighten up some, and with that, will consolidate as an even stronger support zone.
The 100 sma and 200 sma in particular are converging on a point that looks to be about $36.80 or a bit higher:
stockcharts.com[w,a]daclyyay[db][pb200!b100][vc60][iLg!Lp14,3,3]&pref=G
But the 20 sma is rapidly rising to this level:
stockcharts.com[w,a]daclyyay[db][pb20!b100][vc60][iLg!Lp14,3,3]&pref=G
So... the combined support of the 100 sma, 200 sma, and 20 sma will converge on about $36.80, and will be the most likely support that holds.
T |
