This is a premium trade setup for a potential 10% move in TQQQ..here’s where I’d make an entry that I believe is safe to avoid any quick zigzag or corrective flats..or worst yet impulse. [ms-protect-content id=”61,117″]
Best case scenario: Pre-market TQQQ is sitting on the 786 breakout of the drop from 115.4 to 112.70 after an A = C zigzag at 114.61…this breakout is likely going to pop above the top of the B at 115.4 and beyond, as it’s a Wave 1 Wave 2 Wave 3 setup which could push TQQQ to as high as 124-126 in a full 1.618 golden ratio 3rd wave. This is the 80% trade setup I’ve used for many years and the odds are we’re going to see that big move.
Worst case scenario: Failure at 114.61 or the 786 breakout and a deep fade quickly at the open below 112.7 setting up a downward C or 3 to test the 111 618 fibonacci support level.
What I’m expecting: Since this is the 80% trade setup zigzag and 786 reversal breakout move, I’m leaning towards that big pop and 1.00 breakout setting up a wave 3 to as high as 124-126 short term. [/ms-protect-content]