QQQ fell to within a hair of its orange rising megaphone bottom today and is back inside its pink rising megaphone and long-term gray megaphone.
After reaching the orange rising megaphone bottom it would usually bounce into the right shoulder of an H&S and then break out downwards from that and the orange rising megaphone. The likely target for the right shoulder bounce is the bottom of the navy blue price channel on the chart.
The next target would be the bottom of the pink rising megaphone, where it should bounce into the right shoulder of a larger H&S.
The ultimate theoretical target is the gray megaphone VWAP at roughly 40.
Once in a great while you’ll see the right shoulder bounce off a rising megaphone bottom morph into a megaphone. That’s one of the few, rare ways a price will put in a higher high in this spot, but again, it’s unlikely.
To get to the orange rising megaphone bottom, QQQ blew off a very high-odds price channel set-up for a higher high. That failure adds to the general bearishness of the chart.