Invesco QQQ Stock Price Has Found a Strong Resistance – What Next?

Summary:
• What next for the Invesco QQQ stock price? We explain what to expect in the near term as the Nasdaq 100 index rallies

The Invesco QQQ stock price soared to an all-time high as investors remained optimistic about the state of the economy. The ETF jumped to $375, bringing its total year-to-date returns to more than 20%.

Technology rally accelerates

Invesco QQQ is a leading exchange-traded fund (ETF) that tracks the Nasdaq 100 index. It is also one of the most popular ETFs in the world because of the role that technology is playing in all sectors. The fund has more than $180 billion in assets and an expense ratio of 0.20%. 

The QQQ stock has been in a strong bullish trend recently. This recovery has been helped by the overall trend in inflation, which has shown some signs of weakness. As such, analysts believe that the Fed will maintain low-interest rates for a while. Later today, the fund will react to a speech by Jerome Powell at the virtual Jackson Hole Summit. 

The ETF has also rallied because of the strong corporate earnings. Most companies in the fund like Apple, Microsoft, and Google reported results that were better than estimates. Indeed, the five biggest constituents (Apple, Microsoft, Amazon, Facebook, and Google) made a net profit of more than $70 billion in the quarter. 

Most QQQ constituent companies have done well this year. The top performers in the fund this year are firms like Moderna, Nvidia, ASML, Alphabet, Applied Materials, and Atlassian. All these firms share prices have risen by more than 50%. On the other hand, the worst performers are companies like Pinduoduo, Baidu, Peloton, and Trip.com.

QQQ stock price outlook

There is nothing much to say about QQQ. As you can see, the daily chart shows that the fund has been in a strong bullish trend in the past few months. Along the way, it has formed an ascending channel that is shown in black. The fund remains above all moving averages and is close to the upper side of this channel. 

The Relative Strength Index (RSI) has moved close to the overbought level. Therefore, a bullish outlook will be validated if it manages to move above the upper side of the channel. The alternative scenario is where it drops to the lower side of the channel.