Key takeout
- The Investco QQQ Trust reached a record high on Tuesday as investors await revenue reports from key technology firms this week.
- Following a breakout from a flag pattern late last month, QQQ prices are now headed toward price discovery.
- Using a technique that measures the distance of the previous trend, a short-term price target has been estimated at $589, which is based on adding this amount to the breakout area.
- It’s advisable for investors to keep an eye on crucial support levels around $540 and $515 on QQQ charts.
The Investco QQQ Trust (QQQ) is currently trading at an all-time high while investors look forward to upcoming revenue announcements from several major tech companies.
Electric vehicle manufacturer Tesla (TSLA), Google’s parent company Alphabet (GOOGL), and the computing giant IBM (IBM) are all set to report their quarterly earnings after the market closes on Wednesday.
Tracking the tech-heavy Nasdaq 100 index, QQQ has seen gains in recent months, driven by improving sentiment around technology stocks as tariff worries have eased and economic data has shown positive trends.
As of the end of Monday, the ETF had rebounded 40% from a previous drop of the same percentage, and it’s up 10% year-to-date. However, QQQ opened at $563 during Tuesday’s session.
Below is a breakdown of the technology in QQQ charts, highlighting the price levels that investors may find appealing.
Price discovery
After moving past the flag pattern late last month, QQQ prices have continued on a path toward price discovery. Notably, this breakout occurred alongside a golden cross, where the 50-day moving average (MA) surpassed the 200-day MA. This is often viewed as a bullish signal that a new uptrend may be beginning.
Additionally, since early May, the relative strength index has been nearing its upper threshold, which supports the idea of strong price momentum for the fund.
If the fund’s prices keep reaching new highs, it might be beneficial to identify support levels to watch for any future retracements, using technical analysis to set short-term price targets to monitor.
Measured Moving Recent Price Targets
Investors can forecast short-term overhead price targets using measured move techniques, which are favored by chart enthusiasts.
When analyzed on a QQQ chart, this method calculates the distance of the trend just before the flag and adds that amount to the breakout area. For instance, adding $53 to $536 indicates a bullish target of $589—about 4% above Monday’s closing price.
Support levels to monitor
In case of any retracement, the $540 level should be observed first. This area might experience significant buying interest, particularly near the top of the flag pattern and just above the 50-day MA, with two notable peaks formed in December and February.
Furthermore, more significant pullbacks for QQQ could find support around $515. Investors could look for entry points near trendlines that connect related price actions from November to June on the chart.
