There is a falling wedge on the daily chart. There has been a 50% retracement of the Covid rally. There is the potential for a breakout to the upside. The rising wedge in the S&P that preceded this bear market move had a brief move up after breaking out of the wedge but eventually the move played out. The Nasdaq may do something similar here.
Trade active:
I bought a QQQ call expiring Aug 10th today on this pullback which brought us near the 20day and retested the wedge which we have already broken out of.
The strike + premium breakeven level is approximately the equivalent of 12322 in NQ.
The strike + premium breakeven level is approximately the equivalent of 12322 in NQ.
Comment:
Counter-intuitive move up on Thurs and Fri after a bad CPI report showing higher inflation. 20-day moving average has now curled up and we're above it. 50-day MA is the next big resistance overhead along with the two previous highs.
Trade closed: target reached:
Closed out QQQ call today at .382 retrace and 100 week sma level. Could be more upside from here, moon potential even, but not chancing it with expiration approaching.