Russell 2000 Technical Analysis

On the daily chart below for the Russell 2000, we can see that after bouncing from the 1731 swing support, the price kept finding a strong resistance at 1800 and the 50% Fibonacci retracement level. The market got stuck in this range, but the recent higher lows might be a sign that the buyers are trying hard to achieve a breakout. Recent economic data hasn’t been good with retail sales missing forecasts across the board last Friday. Moreover, Fed’s Waller and the big jump in 1 year inflation expectations in the University of Michigan survey, suggest that the Fed may keep conditions tight longer than the market expects. Fundamentally, there’s very little support for the index. Russell 2000 Technical Analysis On the 4 hour chart below, we can see more closely the strong resistance area around the 1800 level. The trendline also shows the series of higher lows that the market has been making lately, which may be a sign that the buyers are trying hard to push through that 1800 resistance and they’re not backing down. This has also created an ascending triangle formation, so the break on either side may lead to a bigger move afterwards. On the 1 hour chart, we can see a little range created around the 1800 level. The resistance is at 1820 and the support at 1780. The best thing to do would be to just wait for the breakout on either side and going with the flow. Important US economic data will be released only towards the end of the week, so in the meantime the technicals will guide. This article was written by ForexLive at www.forexlive.com.
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