As the tech stocks market has been reaching new highs QQQ is extending higher and is testing the most important long-term resistance 430. If we get a rejection here there is no support till 380. The most significant support seen on the monthly chart is 350. Also on the monthly chart visible is a long-term broadening wedge with the five upside waves perfectly aligned and the five waves of the fifth long-term wave.
The Weekly QQQ chart reveals an addition to the previously mentioned, a rising wedge upside resistance test as well with no significant upside breakout above the high set in January. A break above the 430 is now required to invalidate the downside reversal. A break below 417 in the coming days will open the pullback to the 350-380 zone. RSI is posting a negative divergence as well.
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As the famous trader says…
“When you genuinely accept the risks, you will be at peace with any outcome. ””Mark Douglas
How to trade this?
It is a fact that a strong upside resistance for Q1 2024 is 430. If we get a confirmed break here we could see a strong upside continuation and new highs. Near-term, short-trade entries have a higher probability of success. Long trade entries are also possible but only on a price action confirmed break above 430. You can try a short trade here with a stop loss above 440. Thsi trade entry has a huge Risk to reward and is better than the long trade. For inquiries about account management please write to [email protected].
