The QQQ ETF's price has exhibited prolonged overbought conditions
The QQQ ETF's price has exhibited prolonged overbought conditions, as indicated by the Relative Strength Index (RSI), suggesting the potential for a pullback. On the daily chart, we observe two failed attempts by the price to surpass the 371 level, signifying a notable resistance zone.
The 371-374 supply zone on the daily chart holds crucial significance, as its breach would imply the continuation of the ongoing trend.
Conversely, if the price fails to break through this zone, it could trigger a retracement towards crucial support levels at 366, 361, and 357.
A decisive drop below 357 might signify the onset of a significant pullback, with the price potentially descending to around 330.
In the event of a breakout above the 371-374 zone, traders and investors should closely monitor resistance levels at 380 and 384. These levels can act as major barriers as it enters an extremely over-bought area in the RSI indicator, possibly leading to a significant pullback in the price. Traders and investors need to pay attention to these areas for any signs of a trend reversal or increased selling pressure.
Author
Denis Joeli Fatiaki
Independent Analyst
Denis Joeli Fatiaki possesses over a decade of extensive experience as a multi-asset trader and Market Strategist.
