Price Action Recap:
IWM has been ranging between 162.68 and 202.01 since April 2021. That's over 2 year of sideways price movement. The question now is, could small caps finally break above this range with the FED looking to begin cutting rates mid to late 2024?
Currently, IWM has gapped up right into the major range resistance and is showing yet another rejection at this range's highs. Today's candle is also creating a possible liquidity sweep of these highs.
With that being said, price still remains in an uptrend. I personally believe IWM breaks above this level, but first I am looking for price to fill the gap below to 193.64 then make a nice retracement down to support at 188.09 - 189.24 then bounce from there in confluence with holding the long term uptrend support that price is currently holding above. If price somehow breaks below this level while also break below the long term uptrend support, that could signal a full on reversal that could possibly lead to price making a move back to the lows of the range.
Current Confluences for short signals:
- RSI & MACD massively Overbought (Waiting for a bearish divergence to confirm pullback)
- Supply Signal on the Jeanius Indicator (Only One Signal. Waiting for a Confluence sell signal)
-Decreasing Volume
- (Waiting for MACD to begin curling to the downside)
IWM has been ranging between 162.68 and 202.01 since April 2021. That's over 2 year of sideways price movement. The question now is, could small caps finally break above this range with the FED looking to begin cutting rates mid to late 2024?
Currently, IWM has gapped up right into the major range resistance and is showing yet another rejection at this range's highs. Today's candle is also creating a possible liquidity sweep of these highs.
With that being said, price still remains in an uptrend. I personally believe IWM breaks above this level, but first I am looking for price to fill the gap below to 193.64 then make a nice retracement down to support at 188.09 - 189.24 then bounce from there in confluence with holding the long term uptrend support that price is currently holding above. If price somehow breaks below this level while also break below the long term uptrend support, that could signal a full on reversal that could possibly lead to price making a move back to the lows of the range.
Current Confluences for short signals:
- RSI & MACD massively Overbought (Waiting for a bearish divergence to confirm pullback)
- Supply Signal on the Jeanius Indicator (Only One Signal. Waiting for a Confluence sell signal)
-Decreasing Volume
- (Waiting for MACD to begin curling to the downside)
Comment:
Correction: Price has been consolidating since April 2022 which is only 1 year of price sideways movement.
Dennis Butler Jr.