Tech Stocks Up or Down? Great swing trade forming
This is an important time for Nasdaq stocks. RSI and price action on both daily and weekly charts show the possibility of move in either direction. Here is what we see on the weekly:
* the highest price peak was matched with bearish RSI divergence, which led to a sharp pullback
* price has touched 20sma twice and RSI has touched 50 twice - possible setup for a "double dip and rip" (QQQ goes up to new highs)
* price is testing the 10ema again in consolidation after a rapid decline - possible setup for a common second leg lower (QQQ goes down to 50sma, RSI 14-day lowers to 50)
Here is what we see on the daily:
* RSI created bullish divergence as price declined to support (green dots), which let to a bounce
* price is near yellow line and 50sma as resistances - possible setup for a "double top and drop" (QQQ retests 300 or breaks lower)
* price could break over yellow line to complete an inverse H&S - possible setup for sustained move higher (QQQ to 340, 350+)
Conclusion: be patient, watch RSI daily, watch price on 30m - there is a good swing trade forming here
* the highest price peak was matched with bearish RSI divergence, which led to a sharp pullback
* price has touched 20sma twice and RSI has touched 50 twice - possible setup for a "double dip and rip" (QQQ goes up to new highs)
* price is testing the 10ema again in consolidation after a rapid decline - possible setup for a common second leg lower (QQQ goes down to 50sma, RSI 14-day lowers to 50)
Here is what we see on the daily:
* RSI created bullish divergence as price declined to support (green dots), which let to a bounce
* price is near yellow line and 50sma as resistances - possible setup for a "double top and drop" (QQQ retests 300 or breaks lower)
* price could break over yellow line to complete an inverse H&S - possible setup for sustained move higher (QQQ to 340, 350+)
Conclusion: be patient, watch RSI daily, watch price on 30m - there is a good swing trade forming here
