New York, August 30th (TradersHuddle.com) – Shares of PowerShares QQQ Trust (NASDAQ:QQQ) closed the trading session at $54.97 just above calculated resistance at $54.42 moving to what appears to be a new range, as this move will clearly raise the attention of momentum buyers.
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 stock was trading in a well defined range with support at $49.99 and resistance at $54.42, given that this range was broken traders will be closely monitoring the stock?s price action for clues of direction.
From a technical perspective it can be expected that previous resistance becomes support, as the new range gets defined, however, given that PowerShares QQQ’s stock is still near the broken resistance level, traders will be focusing on $54.42 to see if the stock holds the breakout without rolling over.