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TQQQ Shows Mixed Signals with Negative MACD and Missing Fundamental Data

StockInvest.us, 3 weeks ago

StockInvest.us Technical Analysis

On November 06, 2023, ProShares UltraPro QQQ (Ticker: TQQQ) closed at $38.01, a 1.14% increase from its previous close. The trading day saw a high and low price of $38.21 and $37.32, respectively, with a volume of 90.70 million, which is quite a bit lower than the average volume of 107.86 million.

The Relative Strength Index over 14 days (RSI14) stands at 49, indicating a neutral momentum without strikingly apparent overbought or oversold conditions. The stock’s 50-day moving average of $37.46 sits slightly below the current price, while its highly surpassed 200-day moving average is at $33.14 which underlines an overall uptrend over the past months.

However, the negative MACD of -0.97 might raise some concerns as it could suggest a bearish signal and the possible onset of a downtrend.

Regarding price volatility, the average true range (ATR) stands at $4.56, suggesting substantial price movements and a higher potential for rapid price shifts. Current support and resistance levels are identified at $35.7 and $38.04 respectively which can be the areas of interest for traders in the short run.

Fundamental Analysis

TQQQ Fundamentally, TQQQ lacks some crucial figures such as PE ratio, EPS, and Market Cap. These are the metrics which investors often use to value and compare companies giving them a clear idea about a business’s earning potential, and its size in terms of market capitalization. In this case, these data gaps may hinder the potential for thorough fundamental analysis.

Performance Predictions

Based on the available data, the next trading day of November 7 could see the stock in a range surrounded by the support and resistance levels, between $35.7 and $38.04. If it breaks the resistance level, the stock could experience a short bullish phase, while if it descends past the support, a bearish trend may present itself.

In the longer term, within the upcoming week, due to its negative MACD and slightly lower than average volume, the stock may move towards the lower end of the range unless a positive market or company-specific catalyst is introduced.

Final Evaluation

Given the above analysis, ProShares UltraPro QQQ (TQQQ) appears to be in the category of Hold. While the stock remains above its 200-day moving average indicating a long-term uptrend, the negative MACD may signal a possible short-term reversal. Moreover, the missing fundamental data renders integral insights into the company's financial health inaccessible. Potential investors interested in this stock should therefore closely monitor it for more definitive signals and possibly conduct deeper due diligence to fill in the fundamental data gaps before making any decisions.

Check full TQQQ forecast and analysis here.