QQQ still confined to the trading channel since 2010

29 May

The blue trading channel has been a very reliable resistance since 2010. You can see the many times that it has confined price action, only being broken during the COVID bubble. My guess is that it will continue to be resistance. We will likely see a repeat of the action from 2015 and 2018 where price will slowly work sideways but ever so slightly higher with numerous pullbacks until we see a large pullback to the support side of the channel.

Here is what the action looks like on the 1D. You can really see the price trying to break out, but as we saw back in April, it ultimately lost and we had a nice pullback to buy into.

31 May

Not

1 Haz

Not

Look at that long lower wick at the center of the black trading channel resulting from a big upswing at the end of the training day.

1 Haz

Not

This is what price action looks like on the 1hour timescale

9 Haz

Not

Week and a half after my initial post and the market is pushing hard to breakout of the channel. It is still within the noise on the boundary. Monday and Tuesday will be a telling about what direction we are heading.

11 Haz

Not

Still pushing to the limits.

12 Haz

Not

After opening in the red the market powered up to stay above the trendline. Starting to show some support here. I am not sure what is powering this break above the trendline. Without any clear bad news, it looks like it will continue to edge up, maybe all the way to the center line of the purple channel. The we may see a retest of the blue channel.