QQQ Stock Price Prediction: Why did QQQ Stock Got Tangled?

• QQQ stock price has been on a roller-coaster ride under an interesting declining pattern.
• QQQ share price decreased 1.40% during Friday’s trading session with an opening price of $278.38 and a closing price of $294.35
• QQQ share price is trading below 20, 50, 100, and 200-Day EMA.

QQQ stock price was at $288.55 with a dip of 1.40% on Friday’s trading session. The trading volume was above average in Friday’s trading session. The increase in volume shows the positive market sentiment towards the QQQ stock. The formation of a big body bearish candlestick in the last trading session represents that the session was dominated by sellers.

From the start of 2022, the stock is on a roller-coaster ride inside a descending triangle. The stock tried many times to break out of the descending triangle pattern in 2022 year but failed every time. This indicates that the upper trendline of the declining pattern is an upper threshold from where the stock gets distributed. This shows that the accumulation of buyers is needed for the breakout from the descending triangle pattern.

This descending triangle clearly shows that demand for the QQQ stock is weakening. When the price breaks below the lower support of $260.00, it indicates that downward momentum is likely to continue. This also shows that the downward momentum is building and a breakout is imminent. This presents a great opportunity for short traders to further lower the stock price.

More About Invesco QQQ Trust Series 1(NASDAQ: QQQ):

The Invesco QQQ Trust, Series 1 exchange-traded fund was established by Invesco Ltd and is currently run by Invesco Capital Management LLC. This fund invests mainly in the global public equity markets, concentrating on growth and value stocks of large-cap companies in a variety of industries, including energy, real estate, materials, industrials, consumer discretionary, consumer staples, health care, information technology, communication services, and utilities. The fund uses the full replication technique to follow the NASDAQ-100 Index’s performance. The Invesco QQQ Trust, Series 1 is a U.S.-based investment trust that was founded on March 10th, 1999.

Invesco QQQ Trust Series 1(NASDAQ: QQQ) Stock Price Technical Analysis:

According to technical indicators, QQQ stock price may show a downward movement. RSI is decreasing in the oversold zone and is shown a negative crossover which indicates that the sellers are coming in the majority and pushing QQQ downwards. 

This shows the strength of the current bearish trend. The current value of RSI is 42.67 which is below the average RSI value of 49.16. The MACD and the signal line are decreasing and show a negative crossover over the daily chart which supports the RSI claims. Investors need to watch every move over the charts during the day’s trading session.

Summary

On Friday’s trading session, the stock price of Invesco QQQ Trust Series 1 (NASDAQ: QQQ) experienced a dip of 1.40%, with the price reaching $288.55. Despite this dip, there was an increase in volume, suggesting positive market sentiment toward the QQQ stock. However, a descending triangle formation has emerged, indicating a weakening demand for the stock. Technical indicators, such as the RSI and MACD, are in the oversold zone and showing a negative crossover, indicating strength in the current downtrend. Traders should exercise caution before making any trades in the market based on this information.

Technical Levels

Support Levels: $301.36 and $314.83

Resistance Levels: $287.90 and $260.97

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto or stocks comes with a risk of financial loss.

Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.

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