Sign InSummary
As of July 19, 2024, ProShares UltraPro QQQ (TQQQ) closed at $71.06, with heightened trading activity and bullish momentum indicated by an MACD of 3.52, making it a 'Hold' candidate pending a decisive move above or below key resistance and support levels at $73.04 and $62.53, respectively.
TQQQ Technical Analysis
ProShares UltraPro QQQ (TQQQ) closed at $71.06 on July 19, 2024, experiencing a 2.71% decline within a trading range spanning from $70.44 to $73.97. The stock's Relative Strength Index (RSI14) of 45 suggests it is in a neutral position, neither overbought nor oversold. Trading volume came in at 58.38 million, significantly higher than the average volume of 49.68 million, possibly indicating heightened market interest.
The 50-day moving average stands at $70.26, while the 200-day moving average is $55.28, highlighting a substantial upward trend over the longer term. The Moving Average Convergence Divergence (MACD) of 3.52 indicates a bullish momentum in the stock price. Meanwhile, the Average True Range (ATR) at 4.51 points to significant price volatility.
Key support and resistance levels are identified at $62.53 and $73.04, respectively. Given the current price sits just below the resistance, a breakout above $73.04 could signal a strong upward movement.
TQQQ Fundamental Analysis
From a fundamental perspective, TQQQ has a market capitalization of $22.79 billion and boasts a year-high of $85.20, which suggests there is room for growth. Interestingly, the year-low of $30.47 emphasizes the stock's recovery over the past 12 months. Notably, TQQQ has an EPS of 0 and no PE ratio, aligning with its nature as a leveraged ETF designed to provide three times the daily performance of the NASDAQ-100 Index.
The ETF does not generate earnings per share (EPS) or have a price-to-earnings (PE) ratio, hence traditional valuation metrics do not apply. However, its performance mirrors the tech sector's vitality, making it sensitive to tech stocks' movements.
Short-Term Stock Performance Prediction
For the next trading day on July 22, 2024, TQQQ's increased trading volume could lead to heightened volatility. With the stock resting just below the resistance level of $73.04, closely monitoring this threshold is crucial. A breach above this could prompt a bullish run, while failure to surpass it may induce a pullback toward the $62.53 support level.
In the upcoming week, should the overall tech market maintain its strength, TQQQ may challenge its year-high. However, investors must stay attuned to market sentiment and macroeconomic news, especially surrounding tech earnings reports.
Intrinsic Value and Long-Term Investment Potential
TQQQ is structured for aggressive short-term gains, rather than for traditional intrinsic value considerations. As a leveraged ETF, it is most suitable for traders with a high-risk appetite seeking to capitalize on short-term movements within the tech-heavy NASDAQ-100 Index. Long-term investors should be cautious given the potential for amplified losses and the compounding effect over time.
Overall Evaluation: Hold
Given the current technical setup, with the stock just under significant resistance, and the bullish MACD providing momentum, TQQQ is evaluated as a 'Hold' candidate. The market dynamics suggest waiting for a clearer directional move before committing to either a buy or sell position, thereby mitigating potential risks associated with leveraged ETFs.
