Timothy Smith
3 min read
In This Article:
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The Invesco QQQ Trust, which tracks the Nasdaq 100, closed at a record high for the second straight day on Wednesday.
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The fund broke out from a flag pattern in Tuesday’s trading session, paving the way for a further move higher.
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The bars pattern tool projects an overhead target of around $575, while the measured move technique forecasts an overhead target of $586.
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Investors should monitor major support levels on QQQ's chart around $524 and $494.
The Invesco QQQ Trust (QQQ) hit an all-time high Wednesday for the second straight session as tech stocks continued to rally.
The fund, which tracks the Nasdaq 100 index, lost around a quarter of its value between mid-February and early April, dragged down by concerns over big tech’s significant AI spending and uncertainty over the economic impact of President Trump’s “Liberation Day” tariffs. The ETF has recovered all of those loses as concerns about trade policy have subsided and corporate earnings have been generally strong.
The QQQ gained 0.3% to close Wednesday's session at around $541. The fund is now up 6% since the start of 2025.
Below, we break down the technicals on QQQ's chart to identify price levels that investors will likely be watching.
After gapping above the neckline of an inverse head and shoulders formation last month, the QQQ fund continued trending higher before consolidating within a flag pattern just below its record high. The fund broke out from the flag in Tuesday’s trading session, paving the way for a further move higher.
Meanwhile, yesterday’s bullish price action coincided with an uptick in the relative strength index, though the indicator remains below overbought levels, providing ample room for the ETF to continue its uptrend.
Let’s apply technical analysis to QQQ’s chart to project overhead price targets and also identify two crucial support levels worth monitoring during retracements.
Investors can project an overhead price target by using the bars pattern tool. When applying this technique to QQQ’s chart, we extract the price bars comprising the fund’s move higher following the breakout from the head and shoulders formation and overlay them from the flag pattern’s breakout point. This projects a target of around $575.
The measured move technique, also known as the measuring principle, analyzes chart patterns to project future price movements. When applying this analysis, we calculate the distance of the inverse head and shoulders from bottom to top in points and add that amount to the formation’s neckline. For instance, we add $92 to $494, which forecasts a target of $586.
