QQQ ETF Price Prediction ( QQQ Stock Analysis ) $QQQ - YouTube

what's up everybody brad here with the money dad  channel in this video i'm going to be going over  

a pattern that i see on the stock chart of qqq  that is an etf that tracks the nasdaq 100 or the  

100 largest stocks in the nasdaq if you're  not familiar with that etf it is one of the  

biggest etfs in the world one of the most common  etfs in the world for investing and one of the  

best performing etfs in the stock market as far  as performance goes right compared to the s p  

500 so um definitely check that out if uh  if you're not familiar with qqq we're going  

to be going over a technical pattern a chart  pattern on the stock chart for qqq in this video  

so if you like chart patterns if that's your thing  stick along watch this video hit that subscribe  

and like button for me if you're not a subscriber  yet and let's get into it so i'm in trading view  

i have uh the daily candlesticks pulled up for  qqq and uh here i'm going to show you start a  

stock chart pattern with some pretty significant  upside projection and i will give you a price  

target based on the size of this uh stock chart  pattern and i'll show you how to do this yourself  

as well i'm going to go through all the motions of  how i do this how i found this and how i project  

it out to the target i'll also give you the  catalyst that i believe is going to be the reason  

for this big move to the upside as well um let's  just start with the catalyst actually so um the  

catalyst i believe is going to be higher interest  rates and higher interest rates is going to  

positively affect large cap stocks which  this uh etf tracks right the qqq is the  

100 largest stocks in the nasdaq so the nasdaq  100 so you're talking about apple and microsoft  

and all these massive companies so it's the  largest 100 companies so why does interest rates  

um why why are interest rates good for large  stocks well it's actually the it's actually kind  

of a what it's what it's not bad for it kind of  thing high interest rates are bad for small stocks  

because small stocks or unprofitable companies  they use debt to finance their operations uh and  

their company right they're they're not profitable  yet so they have to use debt to finance their  

operations well large companies don't have to rely  on debt as much so as interest rates start going  

up these small companies have to pay more interest  on that debt and it becomes more difficult for  

them to to pay off their debt or to keep growing  right well large companies don't have that problem  

because they don't have to rely on debt they're  profitable right so that is the the reason why um  

it's not necessarily a good thing for large cap  companies that interest rates are going up but  

it's good for the stock price because you're going  to see investors shifting from small cap stocks  

into large cap stocks because of that reason right  they don't want to be in these small cap stocks  

because it's going to be difficult  for these small cap stocks to grow  

whereas that's not as much the  case for large cap stocks so  

even though higher interest rates isn't great  for large cap stocks it is going to be good for  

the stock price of large companies because  investors are going to be shifting into these  

companies um if that i hope that made sense if  it didn't i can clarify let me know down in the  

comments below if i need to kind of expand  on that but i think i got the point across  

so that's the catalyst for this move you know we  can we can even type it into trading view catalyst

so that it reminds me when i go back and look at  this chart you know uh tomorrow or the day later  

or whatever what why i think this is going to  make this move right so catalyst is going to be uh  

interest rates something like that our catalyst is  interest rates okay we've got that in trading view  

we've got our little note to ourself now i'm going  to manipulate this um chart a little bit so that i  

can so i have wiggle room i have some room to to  move around and do some some lines and stuff so  

let's show you the pattern that i'm talking about  here also you can see i have the 200-day moving  

average on here because i was playing around with  moving addresses averages and i noticed that the  

200 acted as resistance really well these two  spots right here on the qqq back in february and  

then late march so i noticed that it bounced  off that really well so i kept that on there  

all right so let's start with a line  right here connecting these two tops

we're going to move this out so that we  have some space for our projection later on  

so we have a line right here kind of looks like  a double top but it came it was a bare move  

down under and then came up into a double  top so it's kind of a strange double top  

usually for double tops you want to see it come  from down below up into it and then back down  

so i'm not really calling that a double  top but it works for the pattern that i see  

which is i'll just go ahead and draw it really  roughly with this brush you got this right here  

and that and then it looks like we're forming  and it hasn't formed yet a right shoulder  

right so you've got your left shoulder your head

and your right shoulder right so this is an  inverse or upside down head and shoulder pattern  

this is pretty significant i really like head  and shoulder patterns i i look for them i'll  

go through all of my stocks on my stock list  frequently looking for head and shoulders patterns  

because they are pretty accurate after if it  completes this swing up to the neckline right  

here and by the way this is the right here this  is the neckline this uh this blue line that i drew  

if this right shoulder completes and gets up to  this neckline it has a pretty high accuracy rate  

of completing the trajectory to the to the  price target doesn't happen every time it's  

not guaranteed it's not a hundred percent  but it's but it's pretty good odds um and  

this neckline is pretty close to flat it's  not perfectly flat but it's pretty close  

and i really like placing trades on  patterns that are going through flat lines  

that's so that you know if if it comes up and then  traces back down and then cuts back underneath and  

and we have a stop loss set at that neckline  you don't lose money uh this is actually  

this neckline is actually actually ascending  so you're actually still going to make a little  

bit of money if you if you get stopped out  at the neckline um so that's always a good  

thing whereas if it was something like you know a  pennant or a flag something that has a descending

resistance line at the top if you have your stop  loss set at this line and we break out and then  

come back down to it you can loot you can still  lose money even with the stop loss right so when  

you have flat horizontal lines that's good because  you're not going to lose as much money on a losing  

trade of course we're not trying to trying to have  a losing trade here but being realistic you know  

not every trade is a winner right so when you do  have losses you want to cut them quickly cut them  

cut them uh so that you're not losing a lot  of money you can move on to your next thing  

anyway getting off on tangents here let's get  into the uh projection right so you got your  

inverted head and shoulders you got your left  shoulder your head your right shoulder where  

the plan here is for this to turn around  come back up to this neckline break through  

and it could head straight up to the price  target or it could come back and retest  

this neckline sometimes it likes to come back and  retest so the idea the plan is if it does do that  

it's going to come up retest and then  bounce off it's going to act as support  

and head up to its price target the  price target is pretty nice on this one  

and we can even make it even more you can make  more money on this if you get into a leveraged  

product something like tqqq is a 300 percent  or 3x leverage of the qqq so you could do  

something like that and get a lot more exposure  it's wilder swings to the upside and downside  

so there's a lot more risk but there's a lot more  reward potential involved if you go the tqq route  

if you want to make this trade with less risk and  less reward just stick with qqq it's that easy  

and by the way i say all these things um not  a financial advisor this is just you know my  

personal opinion my personal observations i'm just  doing this for for fun guys please do your own  

research when you're when you're making your  trades not don't base your trades just off  

of my videos um okay so let's get to the price  target right so we see this is the general idea  

here um we should swing up to the upside possibly  retest this neckline and then keep heading to the  

upside so let's figure out what that target  is going to be to the upside and we base that  

off of the distance from the neckline to the head  and then we project that up from the neckline okay  

so let's clear some of these things out so that um  it's a little bit more clear what we're doing here  

all right so we'll take a ruler well let's  move this little neckline word over here  

take our ruler measure from the  bottom of the head up to the neckline  

and we get approximately 17 or 53 almost 54.  we'll go with 17 because it's a nice round number  

uh so that's the distance from the head to the  neckline so now we're going to project that to the  

upside from the neckline 17 right so project that  over here let's say it cuts up comes back down  

it's around here 17 percent from there oh i don't  even have enough space i'm going to have to move  

this chart even further up that's a good thing  right that means this is a pretty good projection

let's say right about there six uh four thirty  seven four hundred thirty seven dollars on the  

qqq uh we're currently sitting at 373 so i mean  you're talking about 60 dollars of upside um it's  

pretty sweet i mean it's 17 from the neckline and  we've still got a little ways to go to reach that  

neckline so you're talking about a pretty good  chunk of money on this move right going from  

oh we're not at 373 what am i talking about  we are sitting all the way down here at 338.  

so 338 to 437 is like a hundred dollars  um a hundred dollar move on a 338 dollar  

etf that's like 30 that's like a 30 move right so  pretty significant swing to the upside um we're  

seeing here on the qqq based on an inverted head  and shoulders pattern and like i said if you want  

to get even crazier with this potential trade  or potential price target you could uh get into  

which is a 3x a 300 leveraged version of qqq  so much higher reward potential also much  

higher risk potential right so let me know  down in the comments below what you see here  

i've also i also see this little gap right  here um to the upside so that's a good thing  

you know gaps tend to get filled sooner  rather than later so we should see this  

swing to the upside to at least fill  that gap and obviously based on this  

chart pattern we want to see it keep going break  through this neckline and then just keep heading  

up into that 430 i believe i said seven 437  dollar range so we'll call 437 as the price target  

all right price targ rice target that's  that's not right that's weird price target  

437 dollars based on the head  and shoulders pattern right  

so now i can start cleaning up my chart a little  bit i'll probably take that off anyway that is all  

i've got for this video guys i hope you liked  it if you did and you have not hit that like  

button and that subscribe button please do so uh  you can check out all my other videos they are  

um similar i do i do some different things now i  got all kinds of stuff on my page but uh i do have  

some price predictions like this as well so if you  like this kind of stuff that stock chart pattern  

uh analysis and uh price targets based on stock  chart patterns go check out my uh my page i've got  

some videos like this i've also got some other  stuff pretty much all of it is related to the  

stock market and using uh trading view or finvis  tools like that to uh to you know kind of uh check  

out stock market stuff so hope you guys enjoyed  that i'll see you in the next one thanks bye