July 21 Chart of the Day - Invesco QQQ
Invesco QQQ is an exchange-traded fund (ETF) that tracks the Nasdaq-100 Index.
QQQ delivers exposure to companies that are at the forefront of transformative, long-term themes such as Augmented Reality, Cloud Computing, Big Data, Mobile Payments, Streaming Services, Electric Vehicles, and more.
Top 10 Holdings (by percentage of total holdings)
- Alphabet Class A
- Alphabet Class C
Traders and investors have been riding this very bullish chart since October 2022 when price put in a definitive low at $254.26. After some initial sideways action price initiated trend changing behaviors by making a series of higher highs and higher lows before rising above a proverbial "line in the sand" zone around $340.
From a price action technical analysis perspective, price continued its upward trajectory until running into a simple yet powerful trend line at the $388 level and has since pulled back. First targets to the downside could be $370 but if that level doesn't hold then next stop down could be $355-$360 area. Levels of interest below there would be $350 or back to the "line in the sand" $340 level for what could be a classic back test of the breakout levels.
Ultimately, if price rebounds at any of these levels providing a pull back long opportunity then the bulls could have their sights set on $390, $400+, or possibly new all time highs.
So what's next?
Nobody knows for sure but using these 5 price action tools traders and investors can develop levels of interest in both directions.
- Supply/Demand Zones,
- Change Control Zones
Take a look at the charts and let us know what you think.
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