Premium Members Preview: QQQuirky or QQQueen?

The ETF for Nasdag, QQQ has been in a long running uptrend, many times accompanying the King of Price to lead our markets, in a most majestic manner.  Bulls have hailed to her strength while bears have found her quirky because just when they thought she'd lead them to treasures, she would rebound and not look back.

2015-04-08_QQQ D

The day chart shows price is in a zone of decision.  A hold above 106.24 increases the probability of retesting 109.42, above there shows the crowned jewels have been cleaned, suggesting the queen continues upward to ABCD targets.  A hold below 104.68 increases the probability of testing a heavy convergence region at 100.5.  In the world of harmonics, this area offers a potential bounce point and how much if any gives clues as to which levels have a higher probability of being tested.

This Bat harmonic pattern's completion at 100.51 will help price hone in for a retest a solid support area of 99.7.  This is an extremely important support test because failure to hold up there has much lower targets calling her majesty.  I always have awe how harmonic patterns and Fibonacci's offer convergence and interact with one another.  Each downside target has a merging of Fib's derived from different rotations, these behave as both targets as well as probable rejection points.

2015-04-08_QQQ H

An intraday perspective, in this case I'm using an hour chart, shows price is in a descending triangle formation.  Descending triangles have a slight edge to a downside bias, but triangles or consolidation in general has proven to break out in either direction and have follow through.  There are opposing emerging patterns offering targets with a valid breakout of the both the daily zone and the intraday triangle.  A hold above 106.82 has 108.52, 109.70 and 110.92 targets, this scenario will help price test those upside targets on the Day chart.  A hold below 104.24 has the descending triangle target 100.45, this target adds to an already heavy convergence target on the Day chart.  Again, this will be a very important level to see if it can hold her highness up.

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