Has the pullback from the all-time high concluded?
Analysis of the chart indicates that the decline from the all-time high appears corrective. This suggests it is unlikely to undermine the prevailing upward trend that began at the lows observed in April, despite registering a 9% decrease.
It is noteworthy that the 0.382 retracement level lies at 548, and the 200-day simple moving average (SMA) is positioned at 544. Consequently, the correction remains well within the boundaries of the existing uptrend, as it has yet to approach the typical 0.382 retracement threshold.
There is also potential evidence of a bullish flag pattern emerging.
The presence of a bearish marubozu candle followed by a doji during the downtrend could imply a potential reversal, with today's bullish gap-up-and-go serving as a possible confirmation signal.
Furthermore, the 14-period RSI has surpassed its resistance trendline; however, this should be validated by a sustained move above the 50 level.
While there are encouraging technical signals, a definitive bottom has not yet been confirmed yet.
Key indicators to monitor include:
• The establishment of higher highs and higher lows, maintaining support at 588.
• A break above the upper trendline of the flag pattern, including moves above the 50-day moving average and significant resistance at 613.
Although QQQ continues in a favorable direction, it is premature to confirm a conclusive trend reversal at present.
Analysis of the chart indicates that the decline from the all-time high appears corrective. This suggests it is unlikely to undermine the prevailing upward trend that began at the lows observed in April, despite registering a 9% decrease.
It is noteworthy that the 0.382 retracement level lies at 548, and the 200-day simple moving average (SMA) is positioned at 544. Consequently, the correction remains well within the boundaries of the existing uptrend, as it has yet to approach the typical 0.382 retracement threshold.
There is also potential evidence of a bullish flag pattern emerging.
The presence of a bearish marubozu candle followed by a doji during the downtrend could imply a potential reversal, with today's bullish gap-up-and-go serving as a possible confirmation signal.
Furthermore, the 14-period RSI has surpassed its resistance trendline; however, this should be validated by a sustained move above the 50 level.
While there are encouraging technical signals, a definitive bottom has not yet been confirmed yet.
Key indicators to monitor include:
• The establishment of higher highs and higher lows, maintaining support at 588.
• A break above the upper trendline of the flag pattern, including moves above the 50-day moving average and significant resistance at 613.
Although QQQ continues in a favorable direction, it is premature to confirm a conclusive trend reversal at present.
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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.