QQQ - Extremely bearish

6 мая 2022 г.

QQQ dropped a staggering 5% in the previous trading session, and by doing so, it erased its post-FOMC gains. Meanwhile, our price target of 310 USD was reached. Because of that, we would like to update our thoughts on QQQ. We continue to maintain the bearish stance as we think QQQ is due to continue lower. Because of that, we would like to change our medium-term price target of 305 USD to a short-term price target. Our new medium-term price target is 300 USD.

Illustration 1.01

The picture above shows QQQ on the daily chart. Volume bars below the graph indicate that the selling pressure has been increasing.

Technical analysis - daily time frame
RSI, Stochastic, and MACD are bearish. DM+ and DM- also show bearish conditions in the market. ADX suggests that the QQQ might be setting itself to trade within a range for the rest of the week. Overall, the daily time frame is bearish.

Illustration 1.02

As we predicted yesterday, the Nasdaq 100 futures formed a new low.

Technical analysis - weekly time frame
RSI, MACD, Stochastic, DM+ and DM- are bearish. ADX increases, which indicates that the bearish trend is gaining momentum. Overall, the weekly time frame is bearish.

Illustration 1.03

The spike in VIX confirms a bearish consensus.

Please feel free to express your ideas and thoughts in the comment section.

DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not serve as a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.

6 мая 2022 г.

Заметка

The mentioned range is indicated by the yellow rectangle.