12/8/2018 Bears are beginning to overpower bulls. Last week’s gains are mostly wiped out. QQQ, MU, BABA.

QQQ Weekly 12_8_2018.JPG

QQQ opened the week significantly higher but has ended the week nearly 5% lower.  It seems very likely that QQQ will reach the low 150s now. I’ve drawn a downward trend line in the weekly chart above. As you can see, the downward trend line and the major support level intersect at about ~152. That would be a decent place to go long if you are looking for a quick bounce. 

MU weekly 12_8_2018.JPG

MU has continued to struggle along with the rest of the chip sector and market. I’ve labeled a few key levels in the weekly chart of MU above. Currently, MU is testing the previous low at 35, and I believe this price level will not hold. I suspect MU will retest the high 20s in the coming months (labeled 2 in the above chart). The last price level labeled ‘3,’ which is in the mid to high 10s, is very strong support where I will be buying. Lastly, although the chart doesn’t show it, the 9-10 dollar range is the low of the last cyclical cycle in 2016. 

BABA 12_8_2018.JPG

BABA opened the week significantly higher, but has dropped 10% from high to low this week. S1 was the previous significant support level (170), which is where BABA has met overhead resistance. I think BABA will work its way to S2, the previous low at 130. If that breaks, look for a test of S3, which is at a price of 110. 

See you next week!


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