June 23, 2020, 10:20 pm EDT
When and where will the QQQ trend break ?
Technology stocks, represented by Nasdaq 100 or QQQ, made very strong and long uptrend for the past 3 months. It is unusual but we may ask this question, when and where will it finish ? Although there is no way to know the future, it is important that a certain reference is available to give a hint when it happens.
Technically, we can draw two parallel lines describing uptrend channels. The frist channel occurred between March-April and the second channel happened between April-June.
Around June 11-12, there were a couple minor breaks on upper and lower boundaries but QQQ quickly recovered from breaking out and breaking down.
Now, QQQ shows a long shadow candlestick pattern today. It could become a reversal pattern if heavy drops come in the next 1-2 days. Based on the channel boundary, it gives 240 as a key level to watch to determine whether the channel is still valid or breakdown. Then, we can take proper action accordingly.