China technology weekly chart insights - CQQQ
Updated
As we can see from the monthly and weekly chart analysis,
CQQQ got into a one way run up bullish trend from mid 2016 right up to October 2018, at which point markets got a consolidation stage and bulls were unable to make higher highs and found resistance price peaking near USD 67 levels. At this stage, when you observe the weekly charts carefully, price action formed a Triple to formation and soon the bears tool over and once the pattern was completed, the markets saw a change in trend and CQQQ went into a downward trading channel.
It's interesting to observe how the triple top formation, which is a bearish signal at peaks after sustained long term uptrend, was giving out the signals confirming the break. If you observe the first peak in the formation, the green candle on top shows price action where the bulls tried to push the price higher during the day but the bears closed the lower to the weekly high levels. On the second peak, the green candle shows that the bears pulled the price lower to the open, bu the bulls closed at a high. On the third peak, we see a red candle with a Doji, indicating indecision and a possible change in control between the bulls and bears, which is only confirmed after the break of the support zone at the bottom of the triple top formation. However, do note that while the peaks were rather parallel, the bears were able to pull the price lower at each trough of the formation and mostly the red candles were accompanied with higher volumes
Once the triple top was established and breached, price went into a downward channel, it found support once the price had fallen just below USD 40 levels. At this stage, do note that the RSI indicator had started brushing the oversold space and price found support at these levels and the bulls pushed price back into slight higher zones.
If you correlate the weekly and daily charts, the price is now moving in a rectangle and its interesting to note that the price has entered the rectangle set up from top, likely a continuation pattern, and may have a tendency to exit below. However, critical to observe the direction in which breakout happens.
Currently, the price is sitting above the long tern trend line and this will continue to act as a major support going ahead.
Always remember, trading inside the rectangle is dangerous, look out for breakouts, that's where you have higher probability of positive trades and also higher profit levels
If you have any views, please share. If you like what I share, please leave a thumbs up.
Thanks
CQQQ got into a one way run up bullish trend from mid 2016 right up to October 2018, at which point markets got a consolidation stage and bulls were unable to make higher highs and found resistance price peaking near USD 67 levels. At this stage, when you observe the weekly charts carefully, price action formed a Triple to formation and soon the bears tool over and once the pattern was completed, the markets saw a change in trend and CQQQ went into a downward trading channel.It's interesting to observe how the triple top formation, which is a bearish signal at peaks after sustained long term uptrend, was giving out the signals confirming the break. If you observe the first peak in the formation, the green candle on top shows price action where the bulls tried to push the price higher during the day but the bears closed the lower to the weekly high levels. On the second peak, the green candle shows that the bears pulled the price lower to the open, bu the bulls closed at a high. On the third peak, we see a red candle with a Doji, indicating indecision and a possible change in control between the bulls and bears, which is only confirmed after the break of the support zone at the bottom of the triple top formation. However, do note that while the peaks were rather parallel, the bears were able to pull the price lower at each trough of the formation and mostly the red candles were accompanied with higher volumes
Once the triple top was established and breached, price went into a downward channel, it found support once the price had fallen just below USD 40 levels. At this stage, do note that the RSI indicator had started brushing the oversold space and price found support at these levels and the bulls pushed price back into slight higher zones.
If you correlate the weekly and daily charts, the price is now moving in a rectangle and its interesting to note that the price has entered the rectangle set up from top, likely a continuation pattern, and may have a tendency to exit below. However, critical to observe the direction in which breakout happens.
Currently, the price is sitting above the long tern trend line and this will continue to act as a major support going ahead.
Always remember, trading inside the rectangle is dangerous, look out for breakouts, that's where you have higher probability of positive trades and also higher profit levels
If you have any views, please share. If you like what I share, please leave a thumbs up.
Thanks
Note
Testing the upward channel....volumes very thin... look out for more news on China...Note
Nicely being rejected by the resistance thus far, may now test the trend line for a possible bounceTrade active
Please look at my latest analysis on CQQQ in my new post. chart attached for the breakout that's happened. Please share a thumbs up if you like and comments as thats useful
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