Aggressive Traders can Short QQQ on a retest of 162 Resistance
Hello traders! I hope you are doing well.
Although I think we are currently due for a nice bounce back upwards, I wouldn't be surprised to see QQQ rapidly drop and retest the 150-154 zone in the next few days.
The main reason I think shorting near 162 makes sense is because QQQ could not sustain the breakout of the 162 level. Failed breakouts move strongly in the opposite direction of the previous trend because a lot of traders are trapped near the previous highs, and panic sell out of fear of losing even more.
If QQQ does rally upwards, and you like short selling, I think shorting at or near 162 with a stop loss near 167 makes sense. You profit target would be the 152-154 range. This trade has a RR of about 2, which is quite good.
For a reference, I don't like short selling uptrending stocks, so I'm waiting to buy QQQ in the 150-154 support zone.
Although I think we are currently due for a nice bounce back upwards, I wouldn't be surprised to see QQQ rapidly drop and retest the 150-154 zone in the next few days.
The main reason I think shorting near 162 makes sense is because QQQ could not sustain the breakout of the 162 level. Failed breakouts move strongly in the opposite direction of the previous trend because a lot of traders are trapped near the previous highs, and panic sell out of fear of losing even more.
If QQQ does rally upwards, and you like short selling, I think shorting at or near 162 with a stop loss near 167 makes sense. You profit target would be the 152-154 range. This trade has a RR of about 2, which is quite good.
For a reference, I don't like short selling uptrending stocks, so I'm waiting to buy QQQ in the 150-154 support zone.