QQQ closes higher for the 3rd day in a row
PowerShares QQQ ETF (QQQ) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, QQQ ended the month 7.35% higher at 265.79 after gaining $4.66 (1.78%) today. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (QQQ as at Jul 31, 2020):
Friday's trading range has been $5.08 (1.91%), that's slightly below the last trading month's daily average range of $5.32. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for QQQ.
Five candlestick patterns are matching today's price action, the Dragonfly Doji which is known as bullish pattern, three bearish patterns, the Bearish Doji Star, the Hanging Man and the Northern Doji and one neutral pattern, the Doji. The last time a Bearish Doji Star showed up on January 8, 2019, QQQ actually gained 0.81% on the following trading day.
Prices are trading close to the key technical resistance level at 268.41 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 269.79, upside momentum might accelerate should the ETF be able to break out to new highs for the year.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Doji Star" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for QQQ. Out of 10 times, QQQ closed higher 70.00% 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 70.00% with an average market move of 0.46%.