After we analyzed the Qs price action last week (“Monitoring the QQQ at This Price Level“) we cooked some popcorn, sat back in a comfy seat, and watched how the Qs behave around the 172-week EMA body support line.
A picture is worth a thousand words, isn’t it? So, let’s take a look:
Zooming in:
QQQ demonstrated an impressive bounce off that 172-week EMA body support line.
We’re not out of the woods yet but it’s a good start. Note the week opened above the body support line, which means the Qs kept respecting the 172-week EMA line and did not push it down and out.
As a reminder, the ‘original’ best respected body support line that carried the QQQ on its back since September 2009 was the 169-week EMA. However, it was breached by 0.44% last week and the 172-week EMA replaced it.
Curious to see how last week’s bounce looks like when overlaid with the ‘original’ 169-week EMA? Here it is:
While the spotlight is currently on the support side, we pay attention to the best respected resistance lines that hover above:
- The 19-week SMA ($335.02, body, registered in January 2022)
- The 24-week SMA ($346.04, wick, registered in April 2022)
As for next week, it’s a shortened trading week. Will the bounce continue or deflate? We still have some popcorn left (but we’ll cook a fresh round; ever tried a week-old popcorn?…)