Hi All! Spotted something I wanted to chart out for you all to see.
Quick Update:
Since we had our huge sell off in September, we really haven't traded much between 286 and 291. Sure, we did fill in the gap between between Oct 15th and Oct 19th but when we look at the larger time frame, we realize we've only traded in that area just 4 out of the last 65 trading days. That's roughly only 7% of the time.
Now let's look at what price did when we actually broke these two gaps. On Thursday, Oct 15th, we opened up by gapping down right into one of our wedge trendlines and consolidated price between those two trendlines. Then, after getting pressured out of that area, price dropped to another one of our wedge trendlines and continued consolidating until the sellers finally took over.
This confirms the strength of the trend inside of the wedge pattern.
I point this out because, if we start dropping next week, we may need to look to some of these lines for support. They may become crucial next week as we might look to fill the gaps.
Gaps are very tricky to deal with, they may want to be filled by the market, or they may want to avoid them altogether. We should pay close attention to these zones next week.
PLEASE NOTE: This is just an analysis and I am not responsible for any of your trades.
This is a short-term bearish perspective. It's my view on the technicals currently available on the chart and should only be used to dispute or support your original thesis.
QQQ
Quick Update:
Since we had our huge sell off in September, we really haven't traded much between 286 and 291. Sure, we did fill in the gap between between Oct 15th and Oct 19th but when we look at the larger time frame, we realize we've only traded in that area just 4 out of the last 65 trading days. That's roughly only 7% of the time.
Now let's look at what price did when we actually broke these two gaps. On Thursday, Oct 15th, we opened up by gapping down right into one of our wedge trendlines and consolidated price between those two trendlines. Then, after getting pressured out of that area, price dropped to another one of our wedge trendlines and continued consolidating until the sellers finally took over.
This confirms the strength of the trend inside of the wedge pattern.
I point this out because, if we start dropping next week, we may need to look to some of these lines for support. They may become crucial next week as we might look to fill the gaps.
Gaps are very tricky to deal with, they may want to be filled by the market, or they may want to avoid them altogether. We should pay close attention to these zones next week.
PLEASE NOTE: This is just an analysis and I am not responsible for any of your trades.
This is a short-term bearish perspective. It's my view on the technicals currently available on the chart and should only be used to dispute or support your original thesis.
QQQ
