SQQQ ETF downgraded to Hold/Accumulate

The SQQQ ETF price gained 1.01% on the last trading day (Wednesday, 19th Oct 2022), rising from $56.59 to $57.16. During the last trading day the ETF fluctuated 6.33% from a day low at $55.21 to a day high of $58.71. The price has risen in 7 of the last 10 days and is up by 10.75% over the past 2 weeks. Volume fell on the last day by -20 million shares and in total, 143 million shares were bought and sold for approximately $8.17 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.

The ETF lies in the middle of a very wide and strong rising trend in the short term and a further rise within the trend is signaled.Given the current short-term trend, the ETF is expected to rise 55.5% during the next 3 months and, with a 90% probability hold a price between $78.13 and $101.81 at the end of this 3-month period.

The SQQQ 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 $60.26. On a fall, the ETF will find some support from the long-term average at approximately $52.84. 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. 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. 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 Friday, October 14, 2022, and so far it has fallen -11.21%. Further fall is indicated until a new bottom pivot has been found. Furthermore, there is currently a sell signal from the 3 month Moving Average Convergence Divergence (MACD).

SQQQ finds support from accumulated volume at $56.97 and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested.

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 $3.50 between high and low, or 6.33%. For the last week, the ETF has had daily average volatility of 10.90%.

SQQQ holds several negative signals and this should be a sell candidate, but due to the general chance for a turnaround situation 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.