Homepage / Investment / These charts show tech could soon enter a correction, but technician welcomes it
Safe Uploading and Downloading Business Files How to Select the Best Board Management Software How to Organize the Work of a Company “ger├žek Parayla En Iyi Slot Makineleri Ve Spor Bahisler Which is the Best Podcast For Stock Market Beginners? Virtual Data Room Facts How to Protect Confidential Documents for Boards Advantages of Online Meetings Business Issues to Consider When Choosing a Data Room Provider What Is a Data Room? Virtual Board Room Software Due Diligence Risk Factors How to Choose a Reliable Tool for Data Exchange test Users535352253 Board Software and VDR Programs Business Operations Management Software Keep Data Safe and Protect Your Business Data How to Conduct a Board Self-Assessment Uncomplicated Ways to Simplify Daily Business Transactions Due Diligence Blog Digital Data Rooms for the Netherlands The New Era of Business Software and Reporting What Types of Businesses Use VDR Software? Ma Analysis Mistakes The Corporate Governance Role Board Room Apps Secure Board Management With Secure Board Portals What Happens at Board of Directors Meetings? Board Room Software Review How to Prepare Board Rooms for Effective Board Meetings Board Room Software Boosts Performance and Communication Selecting a Secure Data Room Review Local Data Room Service Review How to Find the Best Virtual Data Room Review What to Look for in a Data Room uk Provider Document Storage and Distribution Software Everything About VDRs Corporate Software Advantages How to Choose a Virtual Data Room Provider The Most Secure Way to Transfer Files How to Manage Online Board Meetings Benefits Virtual Data Room Solutions – Must-Haves for M&A and Due Diligence Best Data Room Functions for the Different Types of Industries How to Choose a VDR Software Provider How to Choose an Online Board Portal The Benefits of a Boardroom Review Board Room Online Solutions – How to Get the Most Out of Your Board Meetings Why You Need a Board Room How a Board Room Blog Can Transform Your Business Choosing the Best Board Room Format How to Have Productive and Engaging Board Directors Meetings Choosing the Right Virtual Data Room How to Keep Safe Documents Storage Teaching Kids About Online Safety Avoid Costly Mistakes With Free Data Room Services Corporate Virtual Data Unlimited Data Room Software For Due Diligence Leading Business Software Features to Look For Secure Online Data Rooms Solutions How to Keep Share, Edit and Delete Your Data Safe Virtual Data Room Software Secrets for M&A Due Diligence What to Look For in Boardroom Providers Board of Directors Blog Posts How to Deliver Value at Your Board Meetings How to Have Effective Board Meetings Responsibilities of Board Members Deal Management – How to Effectively Manage a Complex Sales Pipeline Data Rooms For Mergers And Acquisitions How to Have a Successful Board Room Meeting Choosing a Board Room Service Provider What is a Board Room Service? Board Room Software Review – Choosing the Best Portal for Mother Board Meetings Why a Board Room Providers Review Is Important What Is a Board Room Review? Venture Software for VC Firms What Is an Assessment Report? The Importance of a Tech Audit Popular Business Applications What to Look For in a Data Room App What Are Business Applications? How to Choose a Virtual Data Room How to Plan a Data Room Review Coronavirus Guide What is a Virtual Data Room? What Is Data Science? What Is an Operating System? Turbotax Small Business Review How Online VDRs Are Used in M&A Deals Why Choose VDR Software? The Power of Business Software The Benefits of a Software Board Online Data Room Review The Importance of Tech Knowledge Improving Accuracy of Financial Data Online Business Records – How to Keep Your Online Business Records Accurate and Secure What is a Board Portal De? DealRoom Review – A Review of VDR Software M&A Due Diligence for Private Companies The Virtual Data Room Review

Investment

These charts show tech could soon enter a correction, but technician welcomes it

Monday’s tech bounce was a relief for investors after a volatile week for the sector, but Carter Worth’s charts suggest that the good news could be short-lived.

Despite a modest advance Monday, the tech heavy Nasdaq 100 is down 4 percent from its high last month, and the Cornerstone Macro technician is making the case for another 5 percent drop to come.

On a chart of the Nasdaq 100-tracking ETF (QQQ), comprised of large tech stocks, Worth pointed out Friday on CNBC’s“Options Action” that the QQQ had recently broken out of a channel, and that’s usually a sign that a fall is to come.

“What history does tell us often is that if you do overshoot the top, you often will check back,” he said. “What’s happening is the check-back is underway. We’re down some 5 percent from the peak, but we’re not quite back to the channel here … so I think there’s another 3 to 5 percent to go,” Worth said.

What’s more, Worth also points out that the QQQ has been exhibiting what is called a “head and shoulders top,” a pattern that technicians believe is bearish, along with an uptrend line which the ETF has bounced back to repeatedly over the past year. This leads Worth to believe that the QQQ will once again fall to that line.

The drop could actually take the QQQ back to the 150-day moving average for the ETF, says Worth. “[I think] that we get back to the 150-day moving average, which would imply another sort of 5 percent,” he said. “[A drop like that] would represent a peak to trough decline of about 10 percent.”

But in the end, Worth emphasizes that such a sell-off is actually “normal, and that it would be welcome.”

The QQQ is still up almost 17 percent year to date, thanks to the tech rally.

Source: Investment Cnbc
These charts show tech could soon enter a correction, but technician welcomes it

Comments are closed.