QQQ – October 16, 2024

Key Levels:
Support:

487.58 (current low)
484.00 (next potential support with volume interest)

Resistance:

494.22 (previous pivot high)
498.18 – 498.83 (major resistance zone)

Indicators & Observations:
Moving Averages:

The shorter EMA (possibly 15 EMA) is sloping downward, indicating short-term bearish pressure.
The longer EMA (likely 161 EMA) is above the price, confirming a bearish trend continuation.

MACD:

The histogram is deepening into negative territory, suggesting increasing bearish momentum.
The MACD line has crossed below the signal line, signaling a potential continuation to the downside.

Volume Profile:
Current Price Region: The bulk of the volume sits between 484 – 487, making this a key support zone. A breakdown below 484 may trigger further downside quickly due to the low-volume gap beneath.

Volume Increase: The large red candle is accompanied by higher volume, which shows strong bearish participation at the open.

Price Action:
QQQ attempted to push higher but failed to reclaim 494.22. The current momentum suggests bearish continuation if it fails to hold above 487.58.
If the selling pressure continues, a test of the 484 level is likely.
For upside potential, the price must reclaim 494.22 and stay above for bulls to regain control.

Scalping Strategy Setup:

Short Setup:
Look to short on a rejection from the 490 – 494 range, targeting 487 or lower.

Long Setup:
Consider long entries if the price reclaims 494.22 with strong volume, targeting the 498 resistance zone.



Disclaimer:
This analysis is for educational purposes only and does not constitute financial advice. Always conduct your own research or consult a financial professional before making any trading decisions. Trading carries significant risks, and you may lose more than your initial investment.