A very strong day for SQQQ ETF price on Friday

StockInvest.us, 2 months ago

StockInvest.us

The SQQQ ETF price gained 5.45% on the last trading day (Friday, 30th Sep 2022), rising from $58.15 to $61.32. It has now gained 3 days in a row. It will be exciting to see whether it manages to continue gaining or take a minor break for the next few days. During the last trading day the ETF fluctuated 9.24% from a day low at $56.16 to a day high of $61.35. The price has risen in 7 of the last 10 days and is up by 24.84% over the past 2 weeks. Volume fell on the last day by -1 million shares and in total, 159 million shares were bought and sold for approximately $9.72 billion. You should take into consideration that falling volume on higher prices causes divergence and may be an early warning about possible changes over the next couple of days.

Given the current short-term trend, the ETF is expected to rise 2.89% during the next 3 months and, with a 90% probability hold a price between $35.35 and $63.09 at the end of this 3-month period.

SQQQ

Mostly positive signals in the chart today. The SQQQ ETF holds buy signals from both short and long-term moving averages giving a positive forecast for the stock. Also, there is a general buy signal from the relation between the two signals where the short-term average is above the long-term average. On corrections down, there will be some support from the lines at $56.71 and $45.35. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Monday, August 15, 2022, and so far it has risen 83.32%. Further rise is indicated until a new top pivot has been found. Furthermore, there is a buy signal from the 3 month Moving Average Convergence Divergence (MACD). Volume fell during the last trading day despite gaining prices. This causes a divergence between volume and price and it may be an early warning. The ETF should be watched closely.

On the downside, the ETF finds support just below today's level from accumulated volume at $53.68 and $51.78.There is a natural risk involved when a ETF is testing a support level, since if this is broken, the ETF then may fall to the next support level. In this case, SQQQ finds support just below today's level at $53.68. If this is broken, then the next support from accumulated volume will be at $51.78 and $46.96.

This ETF may move much during the day (volatility) and with a large prediction interval from the Bollinger Band this ETF is considered to be "high risk". During the last day, the ETF moved $5.19 between high and low, or 9.24%. For the last week, the ETF has had daily average volatility of 8.60%.

The SQQQ ETF is overbought on RSI14 and lies in the upper part of the trend. Normally this may pose a good selling opportunity for the short-term trader, but some ETFS may go long and hard while being overbought and the RSI is still moving upwards. Regardless, the high RSI together with the trend position increases the risk and higher daily movements (volatility) should be expected. A correction down in the nearby future seems very likely, and it is of great importance that the ETF manages to break the trend before that occurs.

SQQQ holds several positive signals and is within a weak rising trend. As the old saying says, "Let the trend be your friend.'". We therefore consider it to be a good choice at these current levels and we are expecting further gains during the next 3 months.We have upgraded our analysis conclusion for this ETF since the last evaluation from a Buy to a Strong Buy candidate.

Check full SQQQ forecast and analysis here.