Weaker technical forecast for QQQ as ETF downgraded to Hold/Accumulate.StockInvest.us, 1 month ago
The QQQ ETF price gained 1.99% on the last trading day (Wednesday, 28th Sep 2022), rising from $274.48 to $279.94. It has now gained 3 days in a row. It will be exciting to see whether it manages to continue gaining or take a minor break for the next few days. During the last trading day the ETF fluctuated 3.04% from a day low at $272.95 to a day high of $281.25. The price has fallen in 7 of the last 10 days and is down by -5.44% for this period. Volume has increased on the last day along with the price, which is a positive technical sign, and, in total, 10 million more shares were traded than the day before. In total, 79 million shares were bought and sold for approximately $22.17 billion.
The ETF is at the lower part of a wide and horizontal trend in the short term, and normally this may pose a good buying opportunity, though a breakdown through the bottom trend line at $274.25 will give a strong sell signal and a trend shift may be expected.Given the current horizontal trend, you can expect QQQ ETF with a 90% probability to be traded between $271.29 and $327.70 at the end of this 3-month period. A break of a horizontal trend is often followed by a large increase in the volume, and ETFS seldom manage to go directly from the bottom of a trend up to the top. ETFS turning up in the middle of a horizontal trend are therefore considered to be potential runners.
A buy signal was issued from a pivot bottom point on Monday, September 26, 2022, and so far it has risen 2.03%. Further rise is indicated until a new top pivot has been found. Volume is rising along with the price. This is considered to be a good technical signal. Some negative signals were issued as well, and these may have some influence on the near short-term development. The QQQ ETF holds a buy signal from the short-term moving average; at the same time, however, the long-term average holds a general sell signal. Since the longterm average is above the short-term average there is a general sell signal in the ETF giving a more negative forecast for the stock. On further gains, the ETF will meet resistance from the long-term moving average at $303.58. On a fall, the ETF will find some support from the short-term average at $279.52. A break-up through the long-term average will give another buy signal, while a fall below the short-term average will add another sell signal and strengthen the general signal. Furthermore, there is currently a sell signal from the 3 month Moving Average Convergence Divergence (MACD).
QQQ finds support from accumulated volume at $275.51 and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested.
This ETF has average movements during the day and with good trading volume, the risk is considered to be medium. During the last day, the ETF moved $8.31 between high and low, or 3.04%. For the last week, the ETF has had daily average volatility of 2.37%.
QQQ 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 QQQ forecast and analysis here.