Sign InProShares UltraPro QQQ: Fundamental and Technical Analysis, Price Predictions, and Final Evaluation
Summary
As of November 01, 2023, the ProShares UltraPro QQQ (TQQQ) has seen significant volatility and is currently trading at $34.47, with technical indicators suggesting a potential upward trend but caution is advised due to high volatility and the absence of traditional fundamental indicators. (Analysis date: November 01, 2023)
Fundamental Analysis of ProShares UltraPro QQQ
Currently trading under the ticker TQQQ, ProShares UltraPro QQQ is a security traded on the NASDAQ exchange. This security has a last closed price of $34.47 as of November 01, 2023, with a gain of 1.69 (5.16%) on the date compared to the prior trading session.
However, it is worth noting that the underlying asset has neither earnings per share (EPS) nor a price-to-earnings (PE) ratio, critical fundamental analysis indicators. This situation is generally common when the company in question, in this case, ProShares UltraPro QQQ, doesn't generate traditional earnings. That being the case, fundamental analysis of this stock heavily relies on the security's price-based data and movements.
Recent highs and lows of TQQQ offer a detailed perspective to the asset's journey over time. The year's highest price was reported at $47.14, whereas the lowest was at $16.1. It can be inferred that the ProShares UltraPro QQQ has seen substantial volatility within the year, suggesting a wide trading range, a factor of consideration for potential investors.
The volume of TQQQ is another aspect to consider. The traded volume of 103.29 million is slightly lower than the typical trading volume of 107.73 million. If the traded quantity is generally higher, it signals more significant market interest in that particular security.
Technical Analysis of ProShares UltraPro QQQ
The Relative Strength Index (RSI14) of the ProShares UltraPro QQQ is reported at 37, which lies closer to the oversold boundary of 30, indicating that a price reversal might be imminent.
The 50-day moving average and 200-day moving average stand at $37.52 and $32.96, respectively. The last closing price of $34.47 is in between these two moving averages, reflecting that the security's current trend is somewhat neutral.
On the other hand, the Moving Average Convergence Divergence (MACD) indicator (3-month) of -0.23 suggests a potential bearish trend. This assessment is reinforced by the Average True Range (ATR), which stands at 5.22, reflecting high price volatility.
In terms of price levels, TQQQ demonstrates a stop-loss value at $33.00. The defined support and resistance levels are at $32.77 and $35.62, respectively, highlighting the potential price range movement.
Price Predictions and Final Evaluation
Based on the provided data, it can be expected that the trading price for TQQQ for the upcoming day, that is, on November 02, 2023, and the subsequent week might likely make an oscillation between the detailed support and resistance levels. The bearish MACD indicator and an oversold RSI might indicate a potential upward move shortly.
However, due to the high volatility and the absence of usual fundamental indicators such as EPS and PE ratio, investors are advised to be cautious.
To that end, the final evaluation of the ProShares UltraPro QQQ is a HOLD. This evaluation suggests that existing investors might want to retain the position, but potential investors should exercise careful consideration due to the asset's high volatility. Future market events and economic outlook also significantly impact the performance of this security, calling for regular monitoring and reassessment.
