QQQ closes below its opening price unable to hold early session gains
PowerShares QQQ ETF (QQQ) Technical Analysis Report for May 17, 2018 | by Techniquant Editorial Team
QQQ ended Thursday at 168.33 losing $0.65 (-0.38%). Trading $1.21 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices failed to decisively move past the prior day's trading range. 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 May 17, 2018):
Thursday's trading range was $2.10 (1.25%), that's slightly below last trading month's daily average range of $2.43. Things look different on a weekly scale, where volatility is below the markets average with the monthly volatility being slightly above average.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bearish Outside Bar. After moving higher in the previous session, the ETF closed lower but above the prior day's open today, forming a bearish Harami Candle.
After having been unable to move above 169.37 in the previous session, QQQ ran into sellers again around the same price level today, failing to move higher than 169.61.
The market shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Buying could accelerate should prices move above the nearby swing high at 170.82 where further buy stops might get triggered. Selling could speed up should prices move below the close-by swing low at 166.98 where further sell stops might get activated.