While QQQ is well over due for a correction, this upward trend has been very resilient. Always wait for breakouts and head the caution tap at the bottom.
What to watch this week:
The MACD is not giving us a solid trade signal but is currently still in the positive position and above the zero line.
The EMAs similar and are still in a positive upward position not giving a sell signal but its positive nature at ATHs still yield caution.
Revised Target: Because of the positive nature of both the MACD and EMAs and no overhead resistance, here I look at a rare transition to the Elliott Wave Theory to give us some indication of where the next overhead target could be.
Wave 1-2-3-4 are complete and we are likely in the mist of Wave 5. Given Wave 3 over-extended, Wave 5 is likely to be equal distance to Wave 1. This puts our over head target depending on where you mark the bottom of wave 4 at 233 (1.04 move) to 234 (2.04).
After that I expect a retrace to the bottom of wave 4.
Caution:
At market close, all indicators were still positive on the 4hr chart and there is still no overhead resistance. A gap up or slow trickle to new ATHs could open the door to a continued trickle up in price.
What to watch this week:
The MACD is not giving us a solid trade signal but is currently still in the positive position and above the zero line.
The EMAs similar and are still in a positive upward position not giving a sell signal but its positive nature at ATHs still yield caution.
Revised Target: Because of the positive nature of both the MACD and EMAs and no overhead resistance, here I look at a rare transition to the Elliott Wave Theory to give us some indication of where the next overhead target could be.
Wave 1-2-3-4 are complete and we are likely in the mist of Wave 5. Given Wave 3 over-extended, Wave 5 is likely to be equal distance to Wave 1. This puts our over head target depending on where you mark the bottom of wave 4 at 233 (1.04 move) to 234 (2.04).
After that I expect a retrace to the bottom of wave 4.
Caution:
At market close, all indicators were still positive on the 4hr chart and there is still no overhead resistance. A gap up or slow trickle to new ATHs could open the door to a continued trickle up in price.
