Lackluster Bounce for QQQ Off Potential Rising Wedge Bottom
Trader Moe | Dec 06, 2016 02:30PM ET
PowerShares QQQ Trust Series 1 (NASDAQ:QQQ) has put in a lackluster bounce off the bottom of its potential bright blue rising wedge. QQQ has a head and shoulders pattern drawn on the move out of the June 27 low and is trying to get back to its neckline (red).
Although QQQ could zoom up to a new high from here to confirm the rising wedge, it’s more likely to kill that blue rising wedge with a breakdown through its bottom in which it also puts in a break through the red H&S neckline.
This is a perfect spot and time of year for a megaphone right shoulder on the H&S that would turn most of 2016 into a rising megaphone top (green scenario). The rising megaphone would usually complete with a head and shoulders top that breaks out at the same time as the rising megaphone for a fast move down to at least its bottom.
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