PowerShares QQQ Close to Resistance

qqq New York, August 17th (TradersHuddle.com) – Shares of PowerShares QQQ Trust (NASDAQ:QQQ) are trading very close to calculated resistance at $54.36 with the current price action closing at just $53.58 placing the stock near levels that make it difficult to buy.

PowerShares QQQ Trust (NASDAQ:QQQ) is a unit investment trust that issues securities called PowerShares QQQ Index Tracking Stock. The Trust holds all of the component securities of the NASDAQ-100 Index. The Investment objective of the Trust is to provide investment results that generally correspond to the price and yield performance of the NASDAQ-100 Index. Invesco PowerShares Capital Management is the Sponsor of the Trust and The Bank of New York Mellon is the Trustee.

PowerShares QQQ’s current stock range is defined by current calculated support defined at $49.93 and by the resistance level at $54.36, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level.

Traders don’t have a clear entry point for PowerShares QQQ, as the stock is well above support, however, as the stock pulls back towards $49.93 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $54.36 then traders will get an opportunity to enter PowerShares QQQ stock by establishing a position as the stock moves to a higher range.

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