Watching the latest video of PSAadmin on YouTube made me understand the price action of QQQ better during last week. In the daily chart of QQQ I drew in the resistance lines based on previous highs. Notice that price has been trapped in between two lines for the last 6 days. So it wasn't the best choice (I made) to short here while price is still trapped.
If price goes up from here it will be trapped again with heavy resistance above it from the two resistance lines close together. So going long makes little sense at this point, there is just not enough upside potential. There is better shorting potential and it makes sense to short at the break of support at $57.62.
Potential scenarios are: 1) a move up to $59, a pullback to $57.60, and another push up from there, and 2) a pullback to $56.50 and a move back up from there. Watch those lines of support and resistance, price will basically bounce around those lines.
Howard Milano
0 comments:
Post a Comment