Shares of the widely traded ETF Powershares QQQ Trust (QQQ) have made a one week jump that is impressive. It would even be more impressive if some of the critical resistance levels, previously broken on the way down, were successfully surpassed.
With the QQQ trading at $65.00 as this article is being written, there remains the 50% retracement resistance at $65.95 and then the critical 61.8% retracement resistance level at $67.03.
Though QQQ is currently right below its 200-day moving average, and the 50-day moving average line at $65.31 also remains to be tested.
MACD is bullish with a crossover on the daily chart, but that almost had to happen given the four day rally last week.
If that rally had only occurred on a non-holiday week we would be feeling more bullish. Last week was mostly individual traders (usually bullish) and holiday weeks are historically bullish ones.
Let's see what happens when that critical 61.8% level is tested at $67.03. If the QQQ can break above decisively and hold above it we would turn bullish. If not, there is plenty of potential downside ahead.
Disclosure: Author does not currently have a position in the Powershares QQQ Trust.
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Jury Still Out On Powershares QQQ Trust
Published 11/27/2012, 02:20 AM
Updated 07/09/2023, 06:31 AM
Jury Still Out On Powershares QQQ Trust
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