This formation is providing us with some potential information on what direction the markets may be trending in. The SQQQ ETF tracks the performance of the Nasdaq and is currently printing a bearish wedge pattern after a huge move to the downside.
It leads me to believe that the government shut down, similar to the last shutdown may actually be a bullish catalyst for the market.
We may see a further move down in the coming weeks before the market ultimately peaks.
Target for SQQQ approx $16.50
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Bouncing off trendline
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Expecting some resistance at 21.80
Trade active
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Short from 21.80 top tick
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Will scale into this trade if we move higher, with ultimately the largest position being deployed if we close the gap at $26.40.
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Going to re-draw this as a channel, concept remains the same.
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I would not short this yet, wait for the GAP fill, and you can also buy the inverse ETF TQQQ if you like. Ultimately I see this going much lower.
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I think we are Likely to get a bounce here at $18
Trade closed: target reached
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nice take profit, let some ride in case we continue to squeeze
what happens to sqqq if it just continues to go down due to market moving up?
afurs1
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@yilayan1980, SQQQ is supposed to go down as the market goes up, it is the inverse of the market (short). I personally think that SQQQ will bounce in the short term, maybe back to $16-$17 range and then continue moving lower. Ultimately I think this might be going down much lower if I am basing my trade on the chart.
MyCryptoParadise_Nathan
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I'm constantly impressed by your depth of knowledge.