QQQ: Getting Overheated?
Updated
We are reaching critical resistance levels on QQQ thanks to the upside breakout of the rising wedge. We are nearing the Feb 2022 high of 371.83 and the 0.786 fib level of 376.07. Like always, we could continue rallying up, but at this point I think it is more probable for us to see a retracement.
It is still too early to go short in my opinion, we would need to see some sort of rejection off of these levels. If we do see a rejection, I think a drop to where the 1W MA and the 0.5 meet (331.79) will be the most likely place for support.
It is important to note, I believe we have seen the long-term trend reversal, since we got above the 1W MA and 1M MA as well as seeing them cross and curl up. However, a correction is due.
IF we do get rejected off these levels, I imagine a sharp retracement is due. The RSI hit 79 today, a level we have not seen since the sharp correction back in September 2, 2020 which saw a 11% drop in one week. We are seeing the same parabolic move as we did back then as well.
IF we don't get rejected here and consolidate, we will most likely see this move continue, possibly into new ATHs. That being said, I think this is the less likely outcome.
This is not financial advice, do your own research and due diligence.
It is still too early to go short in my opinion, we would need to see some sort of rejection off of these levels. If we do see a rejection, I think a drop to where the 1W MA and the 0.5 meet (331.79) will be the most likely place for support.
It is important to note, I believe we have seen the long-term trend reversal, since we got above the 1W MA and 1M MA as well as seeing them cross and curl up. However, a correction is due.
IF we do get rejected off these levels, I imagine a sharp retracement is due. The RSI hit 79 today, a level we have not seen since the sharp correction back in September 2, 2020 which saw a 11% drop in one week. We are seeing the same parabolic move as we did back then as well.
IF we don't get rejected here and consolidate, we will most likely see this move continue, possibly into new ATHs. That being said, I think this is the less likely outcome.
This is not financial advice, do your own research and due diligence.
Note
QQQ below 360 will validate the rejection, I think that is a good place to go short. It is the low of the past couple of weeks, with next support around 349.
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