QQQ: Bullish Reaction Above Critical Support Level.
On the daily chart, QQQ has established a critical support line at 476.26. This support level has held the price in the past, making it a key level to watch now. The recent price action shows a pullback from recent highs, testing this support line. The 21-day EMA was lost, and now it is a resistance level. To reverse the mid-term bearish sentiment, the QQQ needs to trade above this 21-day EMA again.
The weekly chart presents an evening star pattern, a bearish reversal pattern indicating potential weakness ahead. The evening star consists of a strong uptrend followed by a small-bodied candle and a subsequent strong bearish candle. This pattern is formed at the end of an uptrend, suggesting that the bulls are losing momentum. The key level of 476.26 on the daily chart aligns with the recent pullback seen on the weekly chart, adding significance to this support zone.
Today's reaction is promising, but the QQQ needs to break its 21-day EMA resistance, and make a clear bullish signal in order to frustrate the bearish signal seen on the weekly chart (evening star pattern). Otherwise, we can expect a pullback on the weekly chart.
In summary, QQQ is at a pivotal point with the critical support line at 476.26 being the focal point. The price action in the coming days will determine whether this support can hold and provide a foundation for a rebound, or if the evening star pattern on the weekly chart will lead to further downside pressure. The interplay between the daily support and the weekly bearish pattern will be crucial for us to watch.
This week is the start of earnings season, so we can expect high volatility.
For more detailed technical analyses and insights like this, be sure to follow my account. Your support helps me continue providing valuable content to help you make informed trading decisions.
Remember, real trading is reactive, not predictive, so let's stay focused on the key points described above and only trade when there is confirmation.
“To anticipate the market is to gamble. To be patient and react only when the market gives the signal is to speculate.” — Jesse Lauriston Livermore
All the best,
Nathan.
The weekly chart presents an evening star pattern, a bearish reversal pattern indicating potential weakness ahead. The evening star consists of a strong uptrend followed by a small-bodied candle and a subsequent strong bearish candle. This pattern is formed at the end of an uptrend, suggesting that the bulls are losing momentum. The key level of 476.26 on the daily chart aligns with the recent pullback seen on the weekly chart, adding significance to this support zone.
Today's reaction is promising, but the QQQ needs to break its 21-day EMA resistance, and make a clear bullish signal in order to frustrate the bearish signal seen on the weekly chart (evening star pattern). Otherwise, we can expect a pullback on the weekly chart.
In summary, QQQ is at a pivotal point with the critical support line at 476.26 being the focal point. The price action in the coming days will determine whether this support can hold and provide a foundation for a rebound, or if the evening star pattern on the weekly chart will lead to further downside pressure. The interplay between the daily support and the weekly bearish pattern will be crucial for us to watch.
This week is the start of earnings season, so we can expect high volatility.
For more detailed technical analyses and insights like this, be sure to follow my account. Your support helps me continue providing valuable content to help you make informed trading decisions.
Remember, real trading is reactive, not predictive, so let's stay focused on the key points described above and only trade when there is confirmation.
“To anticipate the market is to gamble. To be patient and react only when the market gives the signal is to speculate.” — Jesse Lauriston Livermore
All the best,
Nathan.
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