After going on a nice rally QQQ is starting to show signs weakness in its price action and RSI.
Key signs to watchout for:
It is very possible that QQQ will simply do a pull back through time where trades flat for a month or two months before starting to rally again. Due to its more tech heavier lean, a correction and sell off in price is very likely as well.
Tighten your stop losses to protect downside risk
- QQQ price action for the first time in a while breaks below its upward trend and holds below for two straight trading days
- RSI 20 has also been forming a bearish divergance pattern with it trending down while price has been climbing over the past month.
Key signs to watchout for:
- RSI breaking below 50
- Price action breaking below its flat support line.
It is very possible that QQQ will simply do a pull back through time where trades flat for a month or two months before starting to rally again. Due to its more tech heavier lean, a correction and sell off in price is very likely as well.
Tighten your stop losses to protect downside risk