TWTR will test a key support levvel 50.3 with possiible breakout
QQQ seems to be near its lower support channel trend line for the new bear trend that it has entered. While a trend reversal for QQQ seems ulikely, a slight bounce from the lower trendline could trigger a bounce in some of the equities that took a hard hit during the last week.
There are no major economic news/reports on Monday, which means that the lower trendline of QQQ might actually provide a slight turning point for current trend.
TWTR in particular suffered 9% decline on Friday, and its current price is in a level where there is confluence between four key support factors.
1. The lower trendline of the strong bull trend that has not been broken since Aug 2014
2. Fibonacci extensions matching 100% with the previous drop that took place on 15th Sep
3. A key horizontal structural support that has been playing a major role in the sessions over the last 2 months
4. RSI, being 30 is signaling an oversold situation which might further drive traders into buying.
This confluence might trigger a spike in demand from traders which if combined with a neutral or positive day for QQQ on Monday, might result in a strong but short lived rally.
Risk Reward is good for an entry with ta tight stop...since the overall situation with the market is risky...and a possible correction might have already started. If the price doesn't bounce within the next 2 days, it will most probably continue to drop until it tests the next critical level around 47.30.
There are no major economic news/reports on Monday, which means that the lower trendline of QQQ might actually provide a slight turning point for current trend.
TWTR in particular suffered 9% decline on Friday, and its current price is in a level where there is confluence between four key support factors.
1. The lower trendline of the strong bull trend that has not been broken since Aug 2014
2. Fibonacci extensions matching 100% with the previous drop that took place on 15th Sep
3. A key horizontal structural support that has been playing a major role in the sessions over the last 2 months
4. RSI, being 30 is signaling an oversold situation which might further drive traders into buying.
This confluence might trigger a spike in demand from traders which if combined with a neutral or positive day for QQQ on Monday, might result in a strong but short lived rally.
Risk Reward is good for an entry with ta tight stop...since the overall situation with the market is risky...and a possible correction might have already started. If the price doesn't bounce within the next 2 days, it will most probably continue to drop until it tests the next critical level around 47.30.