| QQQQ Trend Analysis - 6/30/2006 | ||
| A week ago weekly William's Percentage Range and Lane's Stochastic were both in oversold area. That made us suggest that the rally started on June 13 might not be over yet. Indeed, after a quiet week we had a nice rally on Thursday. QQQQ rose 2.63%, it s the biggest one-day point gain since May 2003. Finally QQQQ ends the week at 38.77. | ||
| Long-term perspective: Our long-term perspective has not change. Long-term QQQQ chart presents a channel started in mid 2003. QQQQ reached the support line on June 13. Some technical indicators and the trend analysis suggest that long-term uptrend might be complete and the long-term support line might me broken soon. We expect the current rally to be a short-term and QQQQ at least to retest the long-term support line again. | ||
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| Short term perspective: QQQQ broke the short-term channel resistance line at 38.37 (± 0.17). Now the daily up trend from June 13 is promoted to a weekly up channel with support/resistance level at 37.42 / 39.14 (as of Friday June 30). In addition QQQQ has another resistance right above 40. Last week rally has also reset weekly oversold indicators and even move daily William's Percentage Range (W%R) in overbought area. The W%R is considered as an earliest signal among other technical indicators to indicate an impending reversal. So if the current short-term up trend continues, then all daily indicators will turn into overbought by the time QQQQ reaches the next resistance area at 40. | ||
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| Summary: We consider that short-term QQQQ rally may continue up till next resistance level at 40 and then turn down to retest long-term support at 37.26 (as of Friday June 30). Chances are high that the next down wave might break this long-term support line. | ||
| Presented by www.thegreedytrader.com Research Group. | ||
Sunday, July 02, 2006
QQQQ Trend Analysis - 6/30/2006
