Binging TQQQ and FNGU with PPO and RSI, 5/31/2023
Based on these two indicators, do we think TQQQ will close up or down tomorrow? Let's look at some data from today:
- The PPO is 4.84 and the PPO Signal is 4.19. This means that the PPO is above its signal line, indicating bullish momentum. - The RSI is 70.12, and the RSI-based MA is 68.38. This means that the RSI is above its moving average, indicating strength in the uptrend. - Both the PPO and the RSI crossed over their MA 7 days ago. This means that both indicators confirmed a bullish trend reversal at that time. - TQQQ peaked 4 days ago at 36.66 and has pulled back to 34.75 today. This means that TQQQ has experienced some profit-taking after reaching a new high.
Based on this information, we can make some predictions:
- TQQQ is likely to continue its uptrend in the long term, as both indicators show positive momentum and trend. - TQQQ may face some resistance near its previous high of 36.66, as it is also close to the upper Bollinger Band (a volatility indicator that shows two standard deviations above and below a 20-day simple moving average). - TQQQ may also experience some volatility in the short term, as it is near the overbought level of 70 on the RSI. This could trigger some selling pressure or consolidation before breaking out higher.
Therefore, our best guess is that TQQQ will close up tomorrow, but not by much. We may see some sideways movement or a minor pullback before TQQQ resumes its upward trajectory. Of course, this is not a guarantee, and we should always use other tools such as stop-loss orders and risk management to protect our positions.
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Based on its RSI and PPO, do you think FNGU will close up or down tomorrow? Today, the PPO is 8.50 and the PPO signal is 7.82. The RSI is 70.30, and the RSI-based MA is 72.86. Both the PPO and the RSI crossed over their MA 7 trading days ago. FNGU peaked 4 days ago at 16.28 and has pulled back to 153.36 today.
There is no definitive answer to this question, as technical indicators are not always reliable and can be affected by various factors, such as news events, market sentiment, and trading volume. However, based on the given data, one possible interpretation is that FNGU is still in an uptrend but may be losing some momentum and facing some resistance. The PPO is positive and above its signal line, which suggests that the bullish trend is intact. However, the PPO has been declining slightly in recent days, which indicates that the rate of change in price is slowing down. The RSI is high and above its MA, which suggests that FNGU is overbought and may be due for a pullback. However, the RSI has not reached the extreme level of 80 or above, which would indicate a strong overbought condition. The RSI has also been following its MA closely, which suggests that there is no divergence between price and momentum.
Therefore, based on these indicators alone, one might expect FNGU to close slightly up or down tomorrow, depending on how the underlying stocks perform. However, this is not a guarantee and other factors may influence the outcome. It is important to use multiple indicators and tools to analyze FNGU's price movement and to have a risk management strategy in place before investing in this leveraged ETN.
