QQQ is trading near $716 after a sharp move down from the recent high around $745.
On the daily chart, price lost the short-term moving average, tested the 50-day area, and failed to regain the prior upside channel. The June 5 gap-down session remains the key technical event in this setup.
Momentum also weakened. MACD turned sharply lower, volume expanded during the selloff, and RSI moved back down from elevated levels.
The weekly chart still shows a strong advance from the April lows, but the latest candle suggests momentum has stalled near the highs. That makes QQQ a candidate for a bearish-to-neutral Call Broken Wing Butterfly.
How the Trade Was Selected
QQQ first caught my attention on the chart.
The June 5 gap-down session interrupted the prior advance and shifted the short-term picture from persistent upside momentum to a more neutral setup. The daily chart showed weakening momentum, while the weekly chart suggested the rally from the April lows was beginning to lose strength.
After identifying QQQ as a potential candidate, I used my private Telegram terminal, Options Strategist, to find a structure that matched my trade criteria.
The selected configuration provided a solid net credit and placed the risk zone sufficiently above the current market price. The risk-reward profile fit the setup I was looking for.
The structure met all strategy requirements, and the trade was opened.