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Red day on Wednesday for QQQ

StockInvest.us, 2 months ago

StockInvest.us

The QQQ ETF price fell by -1.49% on the last day (Wednesday, 20th Dec 2023) from $409.16 to $403.08. During the last trading day the ETF fluctuated 1.88% from a day low at $402.90 to a day high of $410.47. The price has risen in 8 of the last 10 days and is up by 4.68% over the past 2 weeks. Volume has increased on the last day by 18 million shares but on falling prices. This may be an early warning and the risk will be increased slightly over the next couple of days. In total, 53 million shares were bought and sold for approximately $21.28 billion.

The ETF lies in the upper part of a strong rising trend in the short term, and this may normally pose a very good selling opportunity for the short-term trader as reaction back towards the lower part of the trend can be expected. A break-up at the top trend line at $409.97 will firstly indicate a stronger rate of rising.Given the current short-term trend, the ETF is expected to rise 14.27% during the next 3 months and, with a 90% probability hold a price between $428.00 and $468.48 at the end of this 3-month period.

QQQ

The QQQ ETF holds a sell signal from the short-term Moving Average; at the same time, however, there is a buy signal from the long-term average. Since the short-term average is above the long-term average there is a general buy signal in the ETF giving a positive forecast for the stock. On further gains, the ETF will meet resistance from the short-term Moving Average at approximately $404.35. On a fall, the ETF will find some support from the long-term average at approximately $387.02. A break-up through the short-term average will send a buy signal, whereas a breakdown through the long-term average will send a sell signal. Furthermore, there is a buy signal from the 3 month Moving Average Convergence Divergence (MACD). Some negative signals were issued as well, and these may have some influence on the near short-term development. A sell signal was issued from a pivot top point on Tuesday, December 19, 2023, and so far it has fallen -1.49%. Further fall is indicated until a new bottom pivot has been found. Volume rose on falling prices yesterday. This may be an early warning and the ETF should be followed more closely.

On the downside, the ETF finds support just below today's level from accumulated volume at $364.70 and $359.97.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, QQQ finds support just below today's level at $364.70. If this is broken, then the next support from accumulated volume will be at $359.97 and $343.66.

This ETF is usually traded at a good volume, and with minor daily changes, the risk is considered to be low. During the last day, the ETF moved $7.57 (1.88%) between high and low. For the last week, the ETF has had daily average volatility of 1.08%.

Several short-term signals, along with a general good trend, are positive and we conclude that the current level may hold a buying opportunity as there is a fair chance for QQQ ETF to perform well in the short-term.

Check full QQQ forecast and analysis here.