5/12/2019 Stocks drop and break steep upward trend line.

Hi everyone, welcome back!

There are some significant and exciting developments to discuss today.  It seems like the stock market is not liking the new tariff threats. This selling pressure has accelerated due to stocks being at relatively high prices.

QQQ weekly 5_12_2019.JPG

Above is the QQQ on the weekly chart. Notice how the red candle breaks through the steep uptrend line. Now is a good time to sell, and I’m considering selling my FB shares that I purchased about a year ago at 175.

If you are trading the QQQ, I recommend putting a stop loss at or slightly above 190, because if QQQ heads back up to that level, it will most likely be a false breakdown. If you want to play it safer, you could wait for another red candle (further confirmation) on the weekly chart before selling or going short. 

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s