QQQ Nasdaq ETF Daily Chart Head and Shoulders Expansion Pattern

The Nasdaq head and shoulders is receiving a lot of attention by arm chair technical analysts these days. The brown lines show the H&S pattern in play with head at 91 and neckline at 84 which will target 77 if the neckline fails. Price is printing the right shoulder currently so watch to see if the 50-day MA at 88.39 serves as a ceiling for the right shoulder, or not. The H&S remains in play as long as the right shoulder remains below the head at 91. If price prints above 91 a new upper range will open up.

Price is nestled between the 20-day MA at 86.72 below and 50-day at 88.39 above. The move from this bracket will provide a hint on the preferred direction forward. Price continues to print lower lows and lower highs after the peak in early March and is forming an expansion pattern that would ultimately target the lower H&S target. Thus, in a nutshell, the H&S pattern would be nullified with a move above 91 but the downside target of 77 will be in play if price loses 84. The bears need to hold the 50-day MA resistance ceiling and 89.5-ish resistance, otherwise, the bulls will gain upside strength. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.