RUSSELL 2000, Trading Above Keylevel With Continuation Possible!

Hello Traders Investors And Community, welcome to this analysis about one of the major stock market indices RUSSELL 2000, its 4-hour timeframe perspective, the recent price-action, the current formation and what to expect from the index the next times. Similarly to other preliminary indices the RUSSELL 2000 has recovered from its heavy corona breakdown seen this year but this does not mean the bear-market is overall over, in this case, all the main stock market indices begin to struggle with their uptrend growth and either consolidating or already building up downside potential, therefore, it is important to look at the facts and realistically measure what is possible in the next times and what is unlikely to do not get overwhelmed when things move into the reverse perspective, therefore I detected some important signals which will determine the further outcomes of this index.

When looking at my chart now you can watch there that the index formed a symmetrical triangle below the meaningful falling resistance marked in blue which formed by the all-time-high and the tops formed in last price-actions. This triangle has successfully confirmed to the upside and the index managed to closer above the important falling resistance line where it consolidates currently as you can watch it marked in my chart, this consolidation and breakout occurred are two decent bullish signals playing to the possibility that the index can continue with bullish rising to the upside when there do not come any bearish signs which invalidate this scenario again. Furthermore, the trading above the 60-EMA marked in cyan in my chart is supporting this scenario which will be confirmed properly when the index manages to break out of the consolidation and move on as it is shown in my chart.

Taking all these factors into consideration the index currently provides a more bullish than bearish outlook on the short-term, this is really important to note that the index has some potential in the short-term but it will run inevitably into resistance levels higher in the structure, this means a bearish reversal is not totally out of the sight as the uptrend begins to struggle and slowly don't this should not be kept by side. Also, the real economic situation is still providing a big divergence to the stock-market where real economy is damaged by corona and the stock market making almost exceptional growth to the upside where retail moves into the market while smart-money stays out of it this isn't a healthy environment where both factors real economy and stock-market growing together and therefore should not be ignored considering the next months and outcomes where the speculative rallies can reverse and lead to a shaky downside environment.

In this manner, thank you for watching, support for more market insight, have a great day, and all the best to you!

Information provided is only educational and should not be used to take action in the markets.

Comment:

ANALYSIS UPDATE: The RUSSELL 2000 completed the breakout formation and since then accelerated further volatility dynamics.

As the RUSSELL 2000 greatly bounced in the range supports it continued with heavy breakouts into the all-time high regions.