Invesco QQQ Price Outlook: Uncapping the $400 Psychological Support Produces an Advance

Summary:

The $400 psychological resistance stands between the QQQ price and the YTD high of 408.75 following 3 days of gains.

Broad-market exchange-traded funds are gaining broadly, with the Invesco Trust (QQQ) price advancing by 0.75%.

This move marks the third consecutive day that QQQ price has been in green territory. The ETFs are gaining after two studies in the UK and a report by South African doctors indicate that the Omicron variant causes less severe disease (2.5% likely to end up in hospital) than the Delta variant, which carries more than double the risk of hospitalization.

Furthermore, the approval granted by the US Food and Drug Administration (FDA) for Merck’s antiviral drug to treat symptomatic COVID-19 patients got the markets in a cheery mood. The price picture on the daily chart shows that the QQQ price is not too far off the 2021 highs. However, the descending trendline constitutes a primary barrier the bulls must surmount to retest these highs.

Invesco QQQ Price Outlook

408.75 remains the YTD high to beat. However, the bulls need to take out the resistance posed by the descending trendline and the 400.22 resistance to attain this high. The 227.2% Fibonacci extension at 423.51 is a potential future resistance.

On the other hand, a retreat from the current resistance area following a rejection allows for a retest of the 389.49 support (26 November/22 December low). If the bulls fail to defend this support, 382.83 become an additional support level. 375.73 and 369.82 are price support marks that become available if 382.83 gives way.