QQQ - Potential top for the rally + new price targets

Over the past few days, we hinted at several warning signs on Nasdaq's continuous futures chart. Since the index broke above 11 734$, it has trended mostly sideways with declining volume at elevated prices. In our opinion, this continues to hint at the unsustainability of the rally, and therefore we would like to set new price targets for QQQ. Our new short-term price target is 280$, and our new medium-term price target is 270$. The price target for NQ1! stays the same, at 10 000$. Our views are based on fundamental and technical factors detailed in the current and previous articles.

*to invalidate our thesis about the potential top, we would like to see QQQ break above Resistance 1*

Illustration 1.01

Illustration 1.01 displays the daily chart of Nasdaq continuous futures (NQ1!) and several technical developments indicated by colorful arrows.

Technical analysis - daily time frame
RSI is neutral. MACD is bullish. Stochastic performed a bearish crossover. DM+ and DM- are bullish. Overall, the daily time frame is slightly bullish.

Illustration 1.02

Illustration 1.02 shows simple support and resistance levels for Nasdaq continuous futures (NQ1!) on the daily chart.

Technical analysis - weekly time frame
Stochastic and RSI point to the upside. The same applies to MACD, which stays in the bearish zone. DM+ and DM- are bearish. Overall, the weekly time frame is bearish.

Please feel free to express your ideas and thoughts in the comment section.

DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.

Trade active:

QQQ drifts from 285$ to 281$ in the pre-market. Once 280$ will be hit, our medium-term price target of 270$ will become short-term price target.

Trade active:

The setup we introduced recently remains active. If the price holds above the immediate support/resistance level, then we will be forced to abandon our price targets.