CurtisM

QQQ Daily, 04/28/2014: Monday's Bottoming Tail.

NASDAQ:QQQ   POWERSHARES QQQ TRUST, SERIES 1
172 4 2
Monday's big reversal gave us bottoming tails all over the place, including the Q's. This gives the Q's another chance to break out of the price channels it's been in since early March. The Q's have banged into that upper channel line several times and failed, however, this time could be different.

We put in a swing low on the 15th of 83.28 and then a swing high of 88.21 on the 24th. The Q's put in a higher low on Monday and we now have the opportunity of putting in a higher high above 88.21 and if the Q's manage to do this they will break out of the price channel . Rallies are built on higher lows and higher highs and the Q's are set up now to start giving us that kind of price pattern. IMHO, this is the best opportunity the Q's have had in several weeks so it's going to be very important for the Q's to stay away from 85.11 from now on and work their way back up into the 88's. But we are not out of the woods yet and Q's could easily reverse before breaking out of the price channel so caution remains the word of the day.

GL & be careful.
Forgot to ask - what would be your idea of a good entry position given the risk/reward in the case of a breakout?
Reply
There are currently two potential entries with a 3rd coming if Q's can break out of this channel. The first came when the CCI rose back above -100. Do some back testing on that and see if that looks like a decent strategy for you. The 2nd, per my trading strategy, is right now as the 9EMA has crossed up through the 20EMA. The third would come with a break of the upper channel line which, after staying above that channel line for two days, would confirm this as a Bull Flag and bull flags are some of the best patterns to base trades on. IMHO and be sure to put a stop in because, as we all know, this thing can unwind at any time.

Added to TQQQ this morning at 58.40 so my average on these is 57.83. Likely to add last batch if Q's can break out of this price channel.

Not a recommendation and be sure to do your own due diligence.
Reply
2use CurtisM
Of course, i don't base trades on any ones advice. DD is important, but i rather check opinions of those more experienced as well.
Reply
Nice one. Note that NAS100 has a similar trend and it will be touching the resistance in some days as well
Reply
United States
United Kingdom
India
Deutschland
España
France
Italia
Polska
Brasil
Россия
Türkiye
Indonesia
Malaysia
日本
한국
Home Stock Screener Forex Signal Finder Economic Calendar How It Works Chart Features House Rules Moderators For the WEB Widgets Stock Charting Library Priority Support Feature Request Blog & News FAQ Help & Wiki Twitter
Profile Profile Settings Account and Billing Priority Support Ideas Published Followers Following Private Messages Chat Sign Out