The tech sector is on a tear.
NVDA
earnings set the tone last week and the AI craze is on.
QQQ
had a bullish week, closing up +3.53%, bringing it up +8.76% on the month. Strong earnings, job cuts, and developments in AI technology has sent the sector higher.
Technical Analysis: The last two weeks saw
QQQ
break out of the rising wedge we were watching. Last week’s high signaled a test of a bullish channel. This channel uses the same uptrend support line we’ve been watching since the beginning of March. We are looking to see if this continues higher, or if the channel resistance is respected.
My general lean for this week is bullish, although after last week’s incredible run, I do expect a bit of a retrace before we head higher. A healthy pullback is due so we can continue to move up this channel. I would be bullish if price action can continue to hold above last week’s close of 348.40.
Bear case if we can break below last week’s open at 336.25. I’d expect a bounce here as it is in the golden pocket (0.618 retrace would be 337.08), but if we cannot hold this level, we could target the gap to fill below down to 332.91 which would invalidate the golden pocket.
Upside Targets: 348.40 → 349.25 → 350.72 → 352.46 → 354.43 Extended: 356.78
Downside Targets: 346.38 → 344.57 → 341.31 → 338.19 → 336.25 Extended: 334.35
NVDA
earnings set the tone last week and the AI craze is on.
QQQ
had a bullish week, closing up +3.53%, bringing it up +8.76% on the month. Strong earnings, job cuts, and developments in AI technology has sent the sector higher. Technical Analysis: The last two weeks saw
QQQ
break out of the rising wedge we were watching. Last week’s high signaled a test of a bullish channel. This channel uses the same uptrend support line we’ve been watching since the beginning of March. We are looking to see if this continues higher, or if the channel resistance is respected. My general lean for this week is bullish, although after last week’s incredible run, I do expect a bit of a retrace before we head higher. A healthy pullback is due so we can continue to move up this channel. I would be bullish if price action can continue to hold above last week’s close of 348.40.
Bear case if we can break below last week’s open at 336.25. I’d expect a bounce here as it is in the golden pocket (0.618 retrace would be 337.08), but if we cannot hold this level, we could target the gap to fill below down to 332.91 which would invalidate the golden pocket.
Upside Targets: 348.40 → 349.25 → 350.72 → 352.46 → 354.43 Extended: 356.78
Downside Targets: 346.38 → 344.57 → 341.31 → 338.19 → 336.25 Extended: 334.35