QQQ is reaching the top of the long-term uptrend channel

Companies like NVIDIA and Microsoft, which are heavily weighted in QQQ, benefit from the AI boom. This has been a positive catalyst for the ETF.

Top Holdings: Apple, Microsoft, Amazon, NVIDIA, and Alphabet (Google) comprise a significant portion of QQQ.

Sector Exposure: QQQ is heavily weighted toward technology, but also includes consumer discretionary, healthcare, and communication services.

Expense Ratio: 0.20% (low cost for an ETF).

Dividend Yield: Around 0.60% (lower than broader market ETFs like SPY).

QQQ is testing the top of the short-term and a long-term uptrend channel. This level represents a possible fifth short-term and a long-term Elliott upside wave top for the ETF but we need to see a confirmed break below 460 to confirm that. Any significant break above the 542  long-term channel high will lead to a prolonged fifth wave. Learn to Trade Stocks profitably.

 

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QQQ 15 days chart

 

The QQQ weekly chart below reveals a test of the uptrend channel resistance and a rejection from it. At this point,  sell positions have a greater probability of success. If we get a confirmed break below 504, we should see an acceleration of a reversal lower to 445. 445 is the most important long-term bullish support and a break below this support would confirm the fifth wave top. If we see a confirmed break above 504 then QQQ will have a prolonged bullish momentum and you should reverse to long trade entries.

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QQQ weekly

 

How to trade this?

 

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It is a fact that a strong upside resistance for Q1 2025 is 542 and If we get a confirmation of a breakout and a sustained extension above this level we could see still a strong upside continuation in the long-term fifth wave. You can take the short trade here with a stop loss above 540. You can trade with put options as well. For inquiries about account management or copy trading please write to [email protected] or contact me on WhatsApp or Live chat.

QQQ trade setup

 

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