Monday, September 25, 2006 8:46:28 PM
QQQQ - A Swing Trade Long - No Muss, No Fuss...
The following observations were sent to subscribers to the Support & Resistance Report along with Tuesday's areas of "Gathering Support" (Buy Triggers) and "Gathering Resistance" (Sell Triggers) for the QQQQ and 70 other popularly traded Stocks, ETFs, Indexes and Funds.
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The QQQQ delivered a day of wild volatility on Monday. It opened strong and tested Resistance at Friday's high only to pull back to test Support at Friday's low. Support was found from which the QQQQ rallied impressively into the close.
Monday's 5-Minute Chart shows how a "swing trade long" established at Friday's area of "Gathering Support" between $40.63 and $40.72 could have been closed at Monday's area of "Gathering Resistance" between $40.24 and $40.37. It also shows how Monday's area of "Gathering Resistance" was captured by that day's unrelenting rally:
For Tuesday, the QQQQ is in position to test Resistance at the high of its Summer Rally ($40.67). It came within 1 cent of that line of Resistance on Monday.
How much higher the QQQQ can go upon the capture of that Resistance is another question. The price action on the 5-Minute Chart has the look of a bearish "Rising Wedge". Nevertheless, there is room within the wedge to rise to $41.00 and higher on Tuesday.
As for the decent into the October Low ... it could begin at any moment from current lofty levels.
The following observations were sent to subscribers to the Support & Resistance Report along with Tuesday's areas of "Gathering Support" (Buy Triggers) and "Gathering Resistance" (Sell Triggers) for the QQQQ and 70 other popularly traded Stocks, ETFs, Indexes and Funds.
**********************
The QQQQ delivered a day of wild volatility on Monday. It opened strong and tested Resistance at Friday's high only to pull back to test Support at Friday's low. Support was found from which the QQQQ rallied impressively into the close.
Monday's 5-Minute Chart shows how a "swing trade long" established at Friday's area of "Gathering Support" between $40.63 and $40.72 could have been closed at Monday's area of "Gathering Resistance" between $40.24 and $40.37. It also shows how Monday's area of "Gathering Resistance" was captured by that day's unrelenting rally:
For Tuesday, the QQQQ is in position to test Resistance at the high of its Summer Rally ($40.67). It came within 1 cent of that line of Resistance on Monday.
How much higher the QQQQ can go upon the capture of that Resistance is another question. The price action on the 5-Minute Chart has the look of a bearish "Rising Wedge". Nevertheless, there is room within the wedge to rise to $41.00 and higher on Tuesday.
As for the decent into the October Low ... it could begin at any moment from current lofty levels.
Buy at Support
Sell at Resistance
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