Nasdaq 100: The Pattern I See Everywhere, Very Bullish (Technical Analysis)

Summary

• I've noticed a recurring inverse head and shoulders pattern in high-beta tech stocks, signaling potential bullish reversals; the pattern is noticeable in the Nasdaq 100 and the QQQ ETF.
• I break down the pattern, where I see it in the chart, and how the current momentum indicators support a bullish take on QQQ.
• Despite macro concerns (the major bear driver to the thesis), the chart is optimistic, signalling a potential for a 15% upward move in six months.
• The inverse head and shoulders pattern is a classic bullish indicator, and its broad appearance suggests continued upside potential for high-beta tech names.
• Beware: if volatility strikes, we may retest all the way down to the 520 mark, where I see the new resistance forming.

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Introduction

As an investor who uses technical analysis to inform my approach, I am haunted by certain things, like my own pattern recognition abilities. I've honed them staring at hundreds of charts over the last ten years that I've been investing

Analyst’s Disclosure:I/we have a beneficial long position in the shares of QQQ, NBIS, IREN either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.