The Topping Formation in QQQ
We are entertaining the idea of a double top, should there be any reason to believe new highs would print in the markets let that be so, but the past 15 trading sessions may be new money being put to work to capture some gains.
The focus today is on yesterdays candle, today's consolidation and then the break out tomorrow
- Topping patterns don't have to be the exact same structure every time
- The indecision on today's candlestick marks one of the rarest type of candlestick patterns
- 3-bar reversal pattern needs a bullish base, a tight doji (nearly unchanged) formation and then a follow through down on the right side
The rush higher, the pause and very tight consolidation, then the breakdown - in this case a possible resolution to the downside
The QQQ did not penetrate above 175.21
The test today found that the upper channel of the resist points established in mid-March held so far and that there is an intense amount of stalling
Deliberation before the next directional move, at the bottom edge you'll also see very dry volume conditions.....
Trade well and be careful!
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