QQQ Cup and Handle Forming?
QQQ has just hit a weekly resistance level of $372.85 and showing signs of a possible pullback or correction. Nothing is confirmed yet, but this idea shows the possibility of this being the beginning of a cup and handle formation dating back to a late March 2022 high of $371.83. The most recent weekly high and resistance level is a mere $1.02 from the 2022 resistance before breaking down further to hit a bottom of 254.26 in October of 2022 as well.
To be clear, I am not predicting anything, but merely pointing out coincidental TA resistance levels that may line up with a 1 year 3 month cup formation. We will see if a handle forms over the coming weeks, on the chart I have some estimates of what this handle may look like spanning over 10-20 weeks, tapping a prior support level of $331 before continuing a long term uptrend with a target of $470 high. With that all said, this idea would be invalidated with a prolonged weekly close above $380. Should there be a pullback, the neckline for the trend resuming is about $372 - indicated on chart.
Given the recent excitement round mega cap growth companies and AI's impact on future growth and productivity, there is no doubt market sentiment can push right through this resistance level and continue a march upward, despite many indicators showing signs of over extension. Let's see what the market things over the coming weeks/months!
To be clear, I am not predicting anything, but merely pointing out coincidental TA resistance levels that may line up with a 1 year 3 month cup formation. We will see if a handle forms over the coming weeks, on the chart I have some estimates of what this handle may look like spanning over 10-20 weeks, tapping a prior support level of $331 before continuing a long term uptrend with a target of $470 high. With that all said, this idea would be invalidated with a prolonged weekly close above $380. Should there be a pullback, the neckline for the trend resuming is about $372 - indicated on chart.
Given the recent excitement round mega cap growth companies and AI's impact on future growth and productivity, there is no doubt market sentiment can push right through this resistance level and continue a march upward, despite many indicators showing signs of over extension. Let's see what the market things over the coming weeks/months!
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