QQQ – October 16, 2024
Key Levels:
Support:
487.58 (current low)
484.00 (next potential support with volume interest)
Resistance:
494.22 (previous pivot high)
498.18 – 498.83 (major resistance zone)
Indicators & Observations:
Moving Averages:
The shorter EMA (possibly 15 EMA) is sloping downward, indicating short-term bearish pressure.
The longer EMA (likely 161 EMA) is above the price, confirming a bearish trend continuation.
MACD:
The histogram is deepening into negative territory, suggesting increasing bearish momentum.
The MACD line has crossed below the signal line, signaling a potential continuation to the downside.
Volume Profile:
Current Price Region: The bulk of the volume sits between 484 – 487, making this a key support zone. A breakdown below 484 may trigger further downside quickly due to the low-volume gap beneath.
Volume Increase: The large red candle is accompanied by higher volume, which shows strong bearish participation at the open.
Price Action:
QQQ attempted to push higher but failed to reclaim 494.22. The current momentum suggests bearish continuation if it fails to hold above 487.58.
If the selling pressure continues, a test of the 484 level is likely.
For upside potential, the price must reclaim 494.22 and stay above for bulls to regain control.
Scalping Strategy Setup:
Short Setup:
Look to short on a rejection from the 490 – 494 range, targeting 487 or lower.
Long Setup:
Consider long entries if the price reclaims 494.22 with strong volume, targeting the 498 resistance zone.
Disclaimer:
This analysis is for educational purposes only and does not constitute financial advice. Always conduct your own research or consult a financial professional before making any trading decisions. Trading carries significant risks, and you may lose more than your initial investment.
Support:
487.58 (current low)
484.00 (next potential support with volume interest)
Resistance:
494.22 (previous pivot high)
498.18 – 498.83 (major resistance zone)
Indicators & Observations:
Moving Averages:
The shorter EMA (possibly 15 EMA) is sloping downward, indicating short-term bearish pressure.
The longer EMA (likely 161 EMA) is above the price, confirming a bearish trend continuation.
MACD:
The histogram is deepening into negative territory, suggesting increasing bearish momentum.
The MACD line has crossed below the signal line, signaling a potential continuation to the downside.
Volume Profile:
Current Price Region: The bulk of the volume sits between 484 – 487, making this a key support zone. A breakdown below 484 may trigger further downside quickly due to the low-volume gap beneath.
Volume Increase: The large red candle is accompanied by higher volume, which shows strong bearish participation at the open.
Price Action:
QQQ attempted to push higher but failed to reclaim 494.22. The current momentum suggests bearish continuation if it fails to hold above 487.58.
If the selling pressure continues, a test of the 484 level is likely.
For upside potential, the price must reclaim 494.22 and stay above for bulls to regain control.
Scalping Strategy Setup:
Short Setup:
Look to short on a rejection from the 490 – 494 range, targeting 487 or lower.
Long Setup:
Consider long entries if the price reclaims 494.22 with strong volume, targeting the 498 resistance zone.
Disclaimer:
This analysis is for educational purposes only and does not constitute financial advice. Always conduct your own research or consult a financial professional before making any trading decisions. Trading carries significant risks, and you may lose more than your initial investment.
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.