SQQQ ETF downgraded to Hold/Accumulate

StockInvest.us, 2 months ago


The SQQQ ETF price fell by -0.0702% on the last day (Tuesday, 27th Sep 2022) from $56.97 to $56.93. During the last trading day the ETF fluctuated 9.52% from a day low at $53.36 to a day high of $58.44. The price has risen in 7 of the last 10 days and is up by 21.23% over the past 2 weeks. Volume fell on the last day along with the ETF, which is actually a good sign as volume should follow the ETF. On the last day, the trading volume fell by -13 million shares and in total, 149 million shares were bought and sold for approximately $8.51 billion.

The ETFhas broken the very wide and falling short-term trend up. Firstly a slower falling rate is indicated, but this may very well be an early signal of a trend shift. On the reaction, there will be support on the roof of the current trend broken, which is $56.89, a level that may pose a second chance to hit a runner. According to fan-theory $82.67 will be the next possible trend-top level and thereby pose a resistance level that may not be broken at the first attempt.


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 $53.23 and $43.58. A breakdown below any of these levels will issue sell signals. 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 Monday, September 26, 2022, and so far it has fallen -0.0702%. Further fall is indicated until a new bottom pivot has been found. Volume fell together with the price during the last trading day and this reduces the overall risk as volume should follow the price movements.

On the downside, the ETF finds support just below today's level from accumulated volume at $51.78 and $47.23.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 $51.78. If this is broken, then the next support from accumulated volume will be at $47.23 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 $5.08 between high and low, or 9.52%. For the last week, the ETF has had daily average volatility of 7.68%.

SQQQ holds several positive signals, but we still don't find these to be enough for a buy candidate. At the current level, it should be considered as a hold candidate (hold or accumulate) in this position whilst awaiting further development.Due to some small weaknesses in the technical picture we have downgraded our analysis conclusion for this ETF since the last evaluation from a Buy to a Hold/Accumulate candidate.

Check full SQQQ forecast and analysis here.