November 6, 2011

QQQ Selling Zone

  • QQQ Weekly chart is shown with the resistance area.
  • An up move from the current levels may find it difficult to sustain at higher levels.
  • A bigger correction may happen only if 200 SMA gets broken.
  • Price closing the week above the resistance line may confirm a weekly breakout which looks unlikely.
  • So price is in between weekly resistance level and 200 SMA. Range is likely to get resolved in favor of bears.

CISCO Weekly Resistance line

  • Up move of CISCO is taking a pause at the weekly resistance line.
  • Price is showing Negative divergence with MACD indicator in daily chart.
  • Price is staying above 20 SMA and 200 SMA which is giving some hope for bulls. But weekly resistance line is looking good for bears.