QQQ pops to highest close ever
PowerShares QQQ ETF (QQQ) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
QQQ ended the week 2.37% higher at 234.64 after gaining $0.67 (0.29%) today ahead of tomorrow's Presidents' Day market holiday. Today's close at 234.64 marks the highest recorded closing price ever. Trading up to $0.72 lower after the open, the ETF managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (QQQ as at Feb 14, 2020):
Friday's trading range has been $1.30 (0.55%), that's far below the last trading month's daily average range of $2.56. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for QQQ. Prices continued to consolidate within a tight trading range between 232.36 and 234.93 where it has been caught now for the last three trading days.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar.
Prices are trading close to the key technical resistance level at 234.93 (R1). After having been unable to move above 234.93 in the prior session, the market ran into sellers again around the same price level today, failing to move higher than 234.86. The last time this happened on Wednesday, QQQ lost -0.13% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the close-by swing high at 234.93 where further buy stops might get triggered. Selling could accelerate should prices move below the nearby swing low at 232.36 where further sell stops might get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Up Close near high of period" stand out. Its common bullish interpretation has been confirmed for QQQ. Out of 705 times, QQQ closed higher 56.31% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 64.54% with an average market move of 0.63%.