Russell 2000 (RUT) gave us an excellent buy entry on our last call (see chart below), as we achieved the most optimal buy near Support 2 and rallied all the way to our 2000 Target:
The Resistance Zone broke and this delivered a new 20-month High on the index, the effect of which is more accurately seen on the 1W time-frame. The question is, how sustainable can this rally be?
Well as the 1W RSI is only 3 points away from getting overbought (70.00) for the first time since March 2021, having also entered the 2 year Higher Highs Zone, it becomes less and less sustainable. In fact a less risky medium-term strategy would be to start selling and target the 1D MA50 (red trend-line). That is where we will reverse to a buy and target Resistance 1 at 2140.
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Great work back in October and great work now. I really like your charts and explanation. Easy to read/understand. Keep it up.
basictradingtv
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The psychological $2000 has been such a massive resistance for more than 12 months... I am just waiting for a higher timeframe confirmation for the daily/weekly breakout and then I am looking for specific stocks inside the Russell which offer great trading opportunities🤑🤑