QQQ Cup-and-Handle Pattern
I wanted to do a quick mid-week update on one chart that caught my attention.
After the recent weakness in technology and the AI trade, the Nasdaq 100 may be forming a potential cup-and-handle pattern.
In this video, I explain what a cup and handle is, how I use the pattern, and why I think QQQ is sitting at a pretty important inflection point right now.
If the pattern resolves to the upside, the measured move would potentially point toward roughly 840 on QQQ.
On the other hand, if the recent breakout fails and support gives way, I think there is meaningful downside as well.
That is really what makes the setup interesting to me. I am not predicting which direction it has to go. I am simply looking at the chart, identifying the important levels, and letting price tell me what happens next.
This is the type of technical setup I have looked at throughout my career, and I thought it was worth sharing as we head into the end of October.
As always, the ETFs, indexes, and securities discussed are for illustrative and educational purposes only and do not constitute a recommendation to buy or sell any security. Please refer to the disclosures at the beginning and end of the video.
Matt Williams, CFP®
JTM Williams Capital Management
matt@jtmwilliams.com
703-782-3110
jtmwilliams.com
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