The QQQ is in a large descending/falling wedge pattern. In the last few days, the price has increased in accordance with the expectations from the previous analysis and has crossed the Fib 0.5 and is moving towards 0.618.
The volume is more bearish than bullish as it is around the 20 day average therefore does not confirm completely the growth of the index.
The RSI is neutral and near 60 which we consider to be an intermediate overbought area.
The MACD histogram is moving upwards which is bullish, while both the MACD and the signal line are moving strongly upwards.
Overall: QQQ are at the area of strong resistance. There is a FIB of 0.618 and a falling trend line. If QQQ manages to close the following days above that area on more specific volume, it is likely that the BigRed 200 days MA will be reached, which will represent significant resistance. For a bull option, it would be ideal for QQQ to make a high base formation at these levels for a few days and then break through and resistance.
Otherwise, a drop to support, the red dotted line has been smoothed out and probably a further bear market and declined of price.
The volume is more bearish than bullish as it is around the 20 day average therefore does not confirm completely the growth of the index.
The RSI is neutral and near 60 which we consider to be an intermediate overbought area.
The MACD histogram is moving upwards which is bullish, while both the MACD and the signal line are moving strongly upwards.
Overall: QQQ are at the area of strong resistance. There is a FIB of 0.618 and a falling trend line. If QQQ manages to close the following days above that area on more specific volume, it is likely that the BigRed 200 days MA will be reached, which will represent significant resistance. For a bull option, it would be ideal for QQQ to make a high base formation at these levels for a few days and then break through and resistance.
Otherwise, a drop to support, the red dotted line has been smoothed out and probably a further bear market and declined of price.
Consistency is the key of success....
