QQQ Testing Resistance Levels! Critical Zones to Watch for Jan23
Technical Analysis (TA) for Trading:
* Trend Overview: QQQ has shown steady upward momentum recently, forming a rising wedge pattern on the 1-hour chart. However, it's now testing the upper trendline, signaling potential consolidation or reversal.
* Key Support and Resistance Levels:
* Immediate Resistance: $533.82 (recent high).
* Intermediate Support: $520 (aligned with the second PUT wall and historical support).
* Major Support: $499.70 (a critical level and PUT support zone).
* Indicators:
* MACD: Displays a bearish crossover, suggesting a loss in bullish momentum.
* Stochastic RSI: Dips into oversold territory, indicating a possible bounce if buyers step in.
* Volume: Declining during the latest pullback, which may indicate a lack of strong selling pressure.
GEX Analysis for Option Trading:
* Call Gamma Walls:
* Strong Resistance: $535 (60.76% GEX).
* Next Resistance: $540 (47.79% GEX).
* Put Walls:
* Support Levels: $520 (-42.76% GEX) and $500 (-48.06% GEX).
* Implied Volatility (IV):
* IVR: 10.1.
* IVx Average: 17.3.
* Sentiment:
* Puts account for 21.1%, while GEX sentiment remains slightly negative, hinting at cautious outlooks from options traders.
Trade Setups:
1. Bullish Scenario:
* Entry: Above $533.82.
* Target: $540.
* Stop-Loss: $530.
2. Bearish Scenario:
* Entry: Below $528.
* Target: $520.
* Stop-Loss: $532.
Actionable Insights:
* Watch for a breakout above $533.82 with strong volume to confirm bullish continuation.
* A break below $528 could signal a bearish pullback to test $520 support.
Disclaimer: This analysis is for educational purposes only and does not constitute financial advice. Always perform your own research before trading.
* Trend Overview: QQQ has shown steady upward momentum recently, forming a rising wedge pattern on the 1-hour chart. However, it's now testing the upper trendline, signaling potential consolidation or reversal.
* Key Support and Resistance Levels:
* Immediate Resistance: $533.82 (recent high).
* Intermediate Support: $520 (aligned with the second PUT wall and historical support).
* Major Support: $499.70 (a critical level and PUT support zone).
* Indicators:
* MACD: Displays a bearish crossover, suggesting a loss in bullish momentum.
* Stochastic RSI: Dips into oversold territory, indicating a possible bounce if buyers step in.
* Volume: Declining during the latest pullback, which may indicate a lack of strong selling pressure.
GEX Analysis for Option Trading:
* Call Gamma Walls:
* Strong Resistance: $535 (60.76% GEX).
* Next Resistance: $540 (47.79% GEX).
* Put Walls:
* Support Levels: $520 (-42.76% GEX) and $500 (-48.06% GEX).
* Implied Volatility (IV):
* IVR: 10.1.
* IVx Average: 17.3.
* Sentiment:
* Puts account for 21.1%, while GEX sentiment remains slightly negative, hinting at cautious outlooks from options traders.
Trade Setups:
1. Bullish Scenario:
* Entry: Above $533.82.
* Target: $540.
* Stop-Loss: $530.
2. Bearish Scenario:
* Entry: Below $528.
* Target: $520.
* Stop-Loss: $532.
Actionable Insights:
* Watch for a breakout above $533.82 with strong volume to confirm bullish continuation.
* A break below $528 could signal a bearish pullback to test $520 support.
Disclaimer: This analysis is for educational purposes only and does not constitute financial advice. Always perform your own research before trading.
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.
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.