The weekly chart for QQQ indicates that we are currently seeing a Bullish Flag.
The flag pole formed with the October rally, beginning with the final two weeks of the month. The volume spike, indicated on the chart, confirms the consolidation phase of the pattern. This is followed by a decrease in volume as the consolidation phase continues.
The pattern can last up to 12 weeks, but after the 8th week the reliability of the pattern comes into question. Starting with the volume spike (pattern confirmation), QQQ has completed seven weeks in the consolidation phase.
An upward breakout should see the price of QQQ rise to a level equal to the length of the flag pole, measured from the previous resistance to the bottom trendline of the bullish flag. We should see QQQ reach a price of $110 if the Bullish Flag is fully realized with an upward breakout in the next week.
The flag pole formed with the October rally, beginning with the final two weeks of the month. The volume spike, indicated on the chart, confirms the consolidation phase of the pattern. This is followed by a decrease in volume as the consolidation phase continues.
The pattern can last up to 12 weeks, but after the 8th week the reliability of the pattern comes into question. Starting with the volume spike (pattern confirmation), QQQ has completed seven weeks in the consolidation phase.
An upward breakout should see the price of QQQ rise to a level equal to the length of the flag pole, measured from the previous resistance to the bottom trendline of the bullish flag. We should see QQQ reach a price of $110 if the Bullish Flag is fully realized with an upward breakout in the next week.