- QQQ has been in an uptrend from the last couple of days and is presently trading near the primary supply zone.
- The price has been in bearish trend since the start of 2022 and recently broke above the trend line to gain bullish momentum.
- The price is currently trading at $308.76 with a decrease of -0.69%.
The QQQ price melted down from the long term supply zone level at $405 to $260 demand zone, price has been gaining bullish momentum ever since. The price rejected the $315 level trying to break the supply zone. Despite the normal movement, the price is showing strength which is a good indicator for the bulls. The price is currently consolidating in smaller time frames near the supply zone.
The 20 day EMA has positively crossed 50,100 and 200-days EMA indicating bullish strength. A candle needs to break and close above the $311 level for bullish momentum to continue.
The bullishness of the price in the last couple of weeks has resulted in the price trading at the upper band of the bollinger as the price bounced off the lower band. Traders should wait for the confirmation before making a move in this bullish rally.
Technical Analysis of QQQ ETF:
4 hour time frame :
The RSI curve recently touched the 70 mark and came straight down and is currently at 57.87. The 14 day SMA of the RSI curve is above and is at 62.82, once the price crosses the supply we could expect the RSI curve to rise higher. ADX is at 28.82 with +DI above the –DI. The ADX has been in an uptrend since the price started making higher highs and higher lows slowly started to dip as the price reached the supply zone.
Daily time frame :
The RSI curve is at 59.17 above the average which is at 55.58 indicating bullishness in the price. The RSI curve has crossed the 50 mark and will soon the overbought zone if we are able to break the supply zone. ADX has been falling since the price reached the supply zone and is presently at 17.18 with +DI still above the -DI.
Conclusion:
QQQ ETF price is in a bullish trend but to continue this bullish trend price needs to break the resistance and target for the $333 level. The market structure and price action are bullish for QQQ price as it sustains over the demand zone. The technical parameter suggests a pullback as the trend strength takes a hit after reaching the supply zone. QQQ price needs to make a support near the supply zone to again retest and break the $311 level. The longer term for the price is bullish as the most of the AUM of QQQ ETF is invested in the tech industry which is slowly recovering from the recession.
Technical levels:
Major support : $286 and $300
Major resistance : $311 and $333
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss.