ProShares UltraPro Short QQQ [NASDAQ: SQQQ] made it to the list of the most active stock on Tuesday trading up 6.03%. The stock changing hands at $9.15 had a relative change of +0.51. The company stocks went up as high as $9.38 from an intraday low around $8.78. SQQQ had closed the trading on Monday at $8.63 higher that its 52-week low at $8.45. The company is, however, trading much lower compared to its 52-week high at $21.37. By mid-day on May 7, the company had exchanged a total of 56,871,520 representing a 90% rise from the average daily volume at 29,252,892 shares.
In the past few months, there has been a significant change in the positions of institutional investors in the firm. For example, Hengehold Capital Management LLC bought another stake the company’s shares for a sum of $241,000. Another firm, HRT Financial LLC also bought a new stake in ProShares UltraPro Short QQQ for shares worth $290,000 while Smithfield Trust Co. bought a new stake in the company in the first quarter of 2019 for a total cost of $398,000. Meditor group Ltd bought a new stake in the same ProShares UltraPro Short QQQ in the Q4 of 2018 at a cost of $2,898,000 and lastly SG America Securities LLC bought a stake in the firm for a sum of $835,000.
(NASDAQ:SQQQ) Technical Outlook
The hourly chart for ProShares UltraPro Short QQQ stock recently broken above a critical level marking the beginning of a bullish reversal and the formation a fresh uptrend. Prior to the correction, the stock has been trimming gains. It, however, found support at $8.47. An upsurge in the stock price from May 6 place the asset on an upward trajectory. A break above the 61.8% Fib retracement level taken between the swing high of $9.38 and a s swing low of $8.47 sparked more confidence in the trend among the pulls who increased their entries pushing SQQQ to weekly highs of $9.38.
The price briefly traded above EMA200 but could not sustain further upward movement. The EMA200 has been limiting the upside for the past few weeks. Moreover, the retracement from the weekly highs has pushed the stock back under EMA200 to trade at $9.15.
A growing bearish momentum below EMA200 risks the trendline support, see chart. The former resistance at the 61.8% Fib level will try to hold the declines. Primary support for SQQQ is around the recent low slightly above $8.40.
Other indicators, on the chart like the RSI and the MACD show that the stock has a bearish bias in the short-term. The RSI has been rejected from the oversold and is moving sharply to the south. The MACD, although still in the positive region but ranging at +0.125. The divergence has equalized to mean that the incoming trend will be inclined to the sideways.
According to the company description:
“ProShares UltraPro Short QQQ (the Fund) seeks daily investment results, which corresponds to three times the inverse of the daily performance of the NASDAQ-100 Index (the Index). The Index includes 100 of the non-financial domestic and international issues listed on National Association of Securities Dealers Automated Quotation (NASDAQ) Stock Market.”