QQQ - Is a double bottom done rising?
Recently, we warned that the market was likely to bounce after making new lows. Subsequently, that occurred, and the Nasdaq continuous futures rose approximately 7% from their lows. So now, we are again turning bearish on the index in the short term.
Our views, like previously, are based on a combination of fundamental and technical factors. We expect these factors to worsen as the FED continues tightening monetary conditions. Therefore, we have no reason to change our macroeconomic views and stick to the price target of 11 000 USD for NQ1!. Since our last price targets for QQQ were reached recently, we would like to set a new price target of 270 USD.
Illustration 1.01
Illustration 1.01 shows the price of QQQ retracing toward the 20-day SMA, which often coincides with the correction of a primary trend.
Technical analysis - daily time frame
RSI is neutral. MACD is also neutral. Stochastic is bullish. DM+ and DM- are bearish. Overall, the daily time frame is less bearish than a week ago.
Illustration 1.02
Illustration 1.02 displays the daily chart of QQQ and simple support/resistance levels.
Technical analysis - weekly time frame
RSI, MACD, Stochastic, DM+, and DM- are all 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.
Our views, like previously, are based on a combination of fundamental and technical factors. We expect these factors to worsen as the FED continues tightening monetary conditions. Therefore, we have no reason to change our macroeconomic views and stick to the price target of 11 000 USD for NQ1!. Since our last price targets for QQQ were reached recently, we would like to set a new price target of 270 USD.
Illustration 1.01
Technical analysis - daily time frame
RSI is neutral. MACD is also neutral. Stochastic is bullish. DM+ and DM- are bearish. Overall, the daily time frame is less bearish than a week ago.
Illustration 1.02
Technical analysis - weekly time frame
RSI, MACD, Stochastic, DM+, and DM- are all 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 closed: target reached:
Our price target of 270 USD was hit.
Trade closed: target reached:
Our warning came timely, four hours before the drop.
Trade closed: target reached:
Our price target of 11 000 USD for NQ1! was reached.
Trade active:
The Nasdaq 100 index reached a new low for 2022. In the short-term, we think the price action will turn out to be choppy, especially as the FED meeting will approach closer. Therefore, we are turning neutral for the short-term and abstain from setting a price target. However, for the medium and long-term we remain bearish. We will update our thoughts after the CPI print.
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