Invesco QQQ Held Its 200-Day Simple Moving Average And A Golden Cross Looms

The Invesco QQQ
QQQ
Trust ETF (QQQ) represents the stocks in the Nasdaq 100. The daily chart shows that the ETF held its 200-day simple moving average at $290.06 on March 2. This chart also shows that a golden cross will be confirmed soon, when the 50-day simple moving average rises above the 200-day SMA.

The Daily Chart for QQQ

Courtesy of Refinitiv XENITH

The daily chart for QQQ shows that the ETF traded as high as $408.71 on November 22, 2021. This date was a negative key reversal day as the close was below the prior day’s low. A secondary high at $404.58 set on December 28, 2021, established a down trend the stretches to around $350 at the end of March 2023. This lines up with a horizontal line at $349.96, which is the semiannual risky level.

Moving down the chart are three additional horizontal lines. The annual risky level is $340.55. The quarterly risky level is $324.48. The lowest horizontal line is the monthly pivot for March at $297.79.

Going back to March 1, 2022, there was a death cross when the 50-day simple moving average fell below the 200-day simple moving average. Fast forward to today, note the pending golden cross which will occur when the 50-day SMA rises above the 200-day SMA. This should happen by the end of this week.

The Weekly Chart for QQQ

Courtesy of Refinitiv XENITH

The weekly chart for QQQ is neutral with the ETF above its five-week modified moving average at $294. The 200-week simple moving average, or ‘reversion to the mean’ is at $285.22.

The 12x3x3 weekly slow stochastic reading is slipping at 70.17. This measure scales between 00.00 and 100.00 where readings above 80.00 are overbought and readings below 20.00 are oversold. If QQQ stays above its five-week MMA, the stochastic reading will eventually rise, most likely in a week or two.

Trading Strategy: Buy QQQ on weakness to its 200-day simple moving average at $290.06. Reduce holdings on strength to its annual risky level at $340.55.