Friday, December 03, 2010

NASDAQ - Upside Target


Stocks were up again today after opening in negative territory. As you can see in the above daily chart of the NASDAQ (QQQQ),  this ETF has broken out of a triangle formation and appears to be on its way to test its upside target. If you take the height of the triangle pattern and add it to the breakout level, you will arrive at an upside target of approximately 56.50 which is where I think the market is headed. 

2 comments:

Anonymous said...

Kevin, you've often pointed out in the past the basic concept of divergence. Your Q's chart shows what looks to be negative volume divergence on this breakout. Shouldn't the volume be rising with the price here to confirm that this is a breakout? It appears that buyers are not chasing this and that the breakout is not confirmed at this point. Care to correct or clarify this? TIA

Kevin said...

I'm not going to try and pick a top, especially during the month of December when stocks tend to rally. The chart patterns are bullish in my opinion.

DISCLAIMER

This site may include market analysis. All ideas, opinions, and/or forecasts, expressed or implied herein, are for informational purposes only and should not be construed as a recommendation to invest, trade, and/or speculate in the markets. Trading and investing involves high levels of risk. Any investments, trades, and/or speculations made in light of the ideas, opinions, and/or forecasts, expressed or implied herein, are committed at your own risk, financial or otherwise.
 
Google
Technorati Profile Finance Blogs - Blog Top Sites