QQQ - Correction Underway After Recent Highs
The QQQ is currently undergoing a corrective move after reaching a recent high of around 540 USD. The price has retraced sharply from this level, indicating a potential shift in market sentiment as sellers begin to dominate.
Key Levels
Support Zones: Immediate support can be seen around 519 USD, with more significant zones near 500 and 480 USD, which aligns with previous price consolidation.
Market Structure
After a strong upward move, the price has entered a consolidation phase, with lower highs indicating the start of a pullback. Sellers have gained control, as evidenced by the recent price action.
Volume
The CVD is deeply negative, highlighting strong selling pressure in the current market phase. This suggests that while price holds near key support, bearish momentum remains high, and we may see further downside if these levels don't hold.
Outlook
Watch for price action around the current support. If this level breaks convincingly (what has to be expected, regarding the highly negative momentum), we could see a deeper retracement toward 500 USD. On the other hand, a strong bounce from current levels, might signal a resumption of the bullish trend.
The two different pathways show the most likely outlooks:
The green path shows the best bullish case, while the blue path seems to have a higher likelihood, but therefore offers a better RRR for future long positions.
Key Levels
Support Zones: Immediate support can be seen around 519 USD, with more significant zones near 500 and 480 USD, which aligns with previous price consolidation.
Market Structure
After a strong upward move, the price has entered a consolidation phase, with lower highs indicating the start of a pullback. Sellers have gained control, as evidenced by the recent price action.
Volume
The CVD is deeply negative, highlighting strong selling pressure in the current market phase. This suggests that while price holds near key support, bearish momentum remains high, and we may see further downside if these levels don't hold.
Outlook
Watch for price action around the current support. If this level breaks convincingly (what has to be expected, regarding the highly negative momentum), we could see a deeper retracement toward 500 USD. On the other hand, a strong bounce from current levels, might signal a resumption of the bullish trend.
The two different pathways show the most likely outlooks:
The green path shows the best bullish case, while the blue path seems to have a higher likelihood, but therefore offers a better RRR for future long positions.
Disclaimer
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