TQQQ Stock Price Forecast and Trend Model

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TQQQ Stock Price Forecast and Trend Model

TQQQ Stock Price Forecast for 2020 and Beyond

Let’s start off by looking at the investment objective of this leveraged fund.

This leveraged ProShares ETF seeks a return that is 3x the return of its underlying benchmark (target) for a single day, as measured from one NAV calculation to the next. Due to the compounding of daily returns, holding periods of greater than one day can result in returns that are significantly different than the target return and ProShares’ returns over periods other than one day will likely differ in amount and possibly direction from the target return for the same period. These effects may be more pronounced in funds with larger or inverse multiples and in funds with volatile benchmarks. Investors should monitor their holdings as frequently as daily. Investors should consult the prospectus for further details on the calculation of the returns and the risks associated with investing in this product. proshares.com

TQQQ Stock Price Forecast

TQQQ ProShares UltraPro QQQ weekly Stock Chart

The pattern here is quite interesting; it tends to spike to new highs when the MACD’s are trading in the overbought ranges (not shown in the above chart) then pulls back and then attempts to test the old highs before experiencing a stronger pullback. If the pattern (the keyword is if)  repeats then upon testing its highs, it should pull back to the 63 to 66 ranges with a possible overshoot to the 54 ranges.

However keep in mind that unlike the strong pullback that started in May of 2018 and ended Dec of 2018, TQQQ is trading in the extremely oversold ranges on the monthly charts (shown below). Therefore, the intensity of the pullback under normal circumstances would be expected to fall within the mild to medium categories. Alternatively, TQQQ could shed all its excess weight in one shot. Any outcome is fine as long as our indicators pullback from the overbought ranges on the weekly charts.

We will be monitoring TQQQ and several other leveraged ETFs closely as we will be replacing a significant portion of the plays (if not all) under the secondary candidate’s category of the Moderate to High-risk portfolio and replacing them with leveraged ETF’s that we will monitor closely. The idea, as stated before, will be to play the intermediate timelines by following the weekly charts. In other words, we will use the weekly charts to jump in and out of these leveraged plays.

This is another trend that subscribers should pay attention to; this bull market is unusual in that, it’s being powered by B.S. As we stated from the onset of this bull; hot money is the only factor that is keeping this bull alive. Market Update Jan 19, 2020

TQQQ TOP Holdings

TQQQ Stock Price Forecast and top 10 holdings

The above image shows the top 10 holdings of this leveraged Fund.  As AI and technology are set to be the dominant themes for years to come, investors that don’t want to get into the individual stocks and are open to taking on more interest could use strong pullbacks to get into this ETF.  However, investors that are risk-averse can consider the QQQ version which is the non-leveraged version but has the same holdings as TQQQ.

 

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