SQQQ: Bullish Setup

By: TheWaveTrading | Wed, May 21, 2014
Print Email

Entry Date: 05/20/2014; Long: 52.88; Stop: Below trend line; Target: 77

Reason: Head & Shoulder

In the weekly chart of NDX we can see a potential Head & Shoulder reversal pattern.

If the horizontal resistance at 3627 is not breached odds would favour the formation of the right shoulder.

If this bearish pattern pans out the theoretical target is located at the trend line support in force since the 2009 lows which coincides with the 0.5 retracement of the advance from the November 2012 to the March high (14.5% decline from today's hod).

NDX Weekly Chart
Larger Image

The right shoulder could have been completed with a wedge. In the case of SQQQ it is a bullish Falling Wedge.

Even though it is not certain that the wedge is done I anticipated the confirmation since today's Doji may form a Double Bottom within the assumed wedge.

So I am long with a stop below the lower converging trend line. The theoretical target of the inverted Head & shoulder is located at 77.

SQQQ Chart
Larger Image

 


 

TheWaveTrading

Author: TheWaveTrading

TheWaveTrading

Contact: If you would like to contact the author, you can e-mail him at thewavetrading@gmail.com

The main objective of this project is to share my views on several markets and asset classes.

In the initial stage TWT website will be a free service.

My main focus will be the equity market with SPX being the leader but I will also follow US equity sectors, major European indices, fixed income, currencies and commodities markets.

My analysis is based upon traditional Technical Analysis, Elliot Wave guidelines and investor sentiment.

My goal is to establish the most likely path that the price of a particular asset will undertake and profit through ETF instruments both on the long and short side and mainly with leveraged ones (2 x & 3 x).

The advantage of ETF investments is that it allows getting involved in equity indices & sectors, currencies, fixed income, commodities etc.

Therefore the main purpose of TWT will be to establish investment strategies regardless if the market is in an up trend or in a down trend, leveraging the chosen scenario while managing the risk by establishing protective stop losses.

Hence I will always define the risk, I will try to let winners run the wave and I will cut the losses if my strategy is wrong.

Disclaimer: The content of this article is for educational purposes only, the information supplied is not a recommendation to buy or sell any security or financial instrument.

Thewavetrading.com nor the owner can not be held responsible for any loses occurred from the information provided within the website.

The Information supplied cannot be copied or reproduced without the permission from the owner.

Copyright 2011-2014 TheWaveTrading

All Images, XHTML Renderings, and Source Code Copyright © Safehaven.com

SEARCH





TRUE MONEY SUPPLY

Source: The Contrarian Take http://blogs.forbes.com/michaelpollaro/
austrian-money-supply/