Price action
Bears have been trying to pull down QQQ for several days, but have failed consistently to close it below the 272-274 gap as discussed in the post below. Although the 280-ish zone acted as a resistance as expected in the following post, given that bears were unable to close QQQ below the support level, bulls appear to have more ammunition than bears. Of course, it is possible that bears gap it down on Monday below 272, but I am bullish until the 272 level is breached and confirmed as resistance.
Elliot wave
It appears that QQQ has completed the fourth minute wave of the first minor wave to the upside. Besides the obvious pattern, the third wave is exactly 1.618 times the first wave which strengthens this case. Further, the fourth minute wave is exactly 0.38 of the third wave as expected and hasn't moved into the first wave territory. The fifth minute wave should end at 287-288 assuming that it is equal in length to the first wave or 0.618 of the total run of the first and the third wave.
What if I am wrong?
A move below 272 will invalidate the above analysis as it would mean that (a) the price moving below the strong support indicates a further downside potential, and (b) the downtrend started this week cannot be the fourth wave as it would enter the first wave territory. This would mean that QQQ could go down to 239 in an ABC pattern.
PS: This analysis is just for entertainment purposes and is not a recommendation to buy or sell. Please do your own research and trade at your own risk.
Bears have been trying to pull down QQQ for several days, but have failed consistently to close it below the 272-274 gap as discussed in the post below. Although the 280-ish zone acted as a resistance as expected in the following post, given that bears were unable to close QQQ below the support level, bulls appear to have more ammunition than bears. Of course, it is possible that bears gap it down on Monday below 272, but I am bullish until the 272 level is breached and confirmed as resistance.
Elliot wave
It appears that QQQ has completed the fourth minute wave of the first minor wave to the upside. Besides the obvious pattern, the third wave is exactly 1.618 times the first wave which strengthens this case. Further, the fourth minute wave is exactly 0.38 of the third wave as expected and hasn't moved into the first wave territory. The fifth minute wave should end at 287-288 assuming that it is equal in length to the first wave or 0.618 of the total run of the first and the third wave.
What if I am wrong?
A move below 272 will invalidate the above analysis as it would mean that (a) the price moving below the strong support indicates a further downside potential, and (b) the downtrend started this week cannot be the fourth wave as it would enter the first wave territory. This would mean that QQQ could go down to 239 in an ABC pattern.
PS: This analysis is just for entertainment purposes and is not a recommendation to buy or sell. Please do your own research and trade at your own risk.
PS: This analysis is just for entertainment purposes and is not a recommendation to buy or sell. Please do your own research and trade at your own risk.