QQQ has formed a double top, a classic bearish reversal pattern indicating potential trend exhaustion. The price has broken below the neckline, confirming the pattern and signaling further downside. If selling pressure continues, we could see a move toward the target zone.
This breakdown suggests that bulls are losing momentum, and unless QQQ can reclaim the neckline, the bearish bias remains intact. However, false breakdowns can occur, so it's important to watch for a potential retest of the neckline before further downside.
📊 Key Levels:
🔵 Entry: Breakdown confirmation below support
🔴 Stop Loss: 524.65 🔻 (Invalidation level if price reclaims this zone)
🟢 Target: 458.59 ✅ (Measured move from the pattern)
🔎 Watch for:
📌 A retest of the neckline as resistance
📌 Increased volume confirming the breakdown
📌 Possible continuation if sellers remain in control
This setup presents a strong risk-to-reward opportunity for bears, but staying cautious of any reversals is key.
This breakdown suggests that bulls are losing momentum, and unless QQQ can reclaim the neckline, the bearish bias remains intact. However, false breakdowns can occur, so it's important to watch for a potential retest of the neckline before further downside.
📊 Key Levels:
🔵 Entry: Breakdown confirmation below support
🔴 Stop Loss: 524.65 🔻 (Invalidation level if price reclaims this zone)
🟢 Target: 458.59 ✅ (Measured move from the pattern)
🔎 Watch for:
📌 A retest of the neckline as resistance
📌 Increased volume confirming the breakdown
📌 Possible continuation if sellers remain in control
This setup presents a strong risk-to-reward opportunity for bears, but staying cautious of any reversals is key.
Trade closed: target reached
Note
Now that targets have been reached, I see a potential bounce back. A possible double or triple top could start forming around the 480–490 area, followed by a continued decline as the yield curve begins to spread. However, this is just speculation. After observing the yield curve for an extended period, I remain skeptical of this scenario, as the yield curve is still in an abnormal state.I will be looking for buying opportunities in the coming days.
Thank you!
Disclaimer
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.