IWM: A 52-week high is coming
Updated
Dear all, in my last post on IWM (IWM is looking good: tradingview.com/chart/IWM/hZ8m7FwQ-IWM-is-looking-good/) I used Elliot Wave analysis to project a target of 171.5 to 173.6. While I am still bullish on IWM it is having trouble breaking 169.3 which equates to the 0.382 resistance in the Fibonacci. Once we break this resistance we are probably headed to new 52 week highs and this is reinforced by recent price patterns; namely a cup and handle which has recently formed as well as moderately bullish RSI divergence (represented by two yellow lines in RSI and one on the chart).
A cup and handle is considered a bullish continuation pattern and I am using it to identify what I think is a buying opportunity. We see a U-shaped bottom coupled with a handle which does not drop more than 1/2 the depth of the cup that experiences a decrease in volume (marked with a orange) all of which are characteristic of a cup and handle formation. To gauge a price target we take the depth of the cup and apply it to the bottom of the handle; this imputes a value for IWM of 171 in the coming days, lets see what happens.
Thanks for reading, questions, comments, and criticisms are welcome.
A cup and handle is considered a bullish continuation pattern and I am using it to identify what I think is a buying opportunity. We see a U-shaped bottom coupled with a handle which does not drop more than 1/2 the depth of the cup that experiences a decrease in volume (marked with a orange) all of which are characteristic of a cup and handle formation. To gauge a price target we take the depth of the cup and apply it to the bottom of the handle; this imputes a value for IWM of 171 in the coming days, lets see what happens.
Thanks for reading, questions, comments, and criticisms are welcome.
Note
Funny how the rating was overwhelmingly Buy on tradingview for IWM a day or two ago then it dropped. Right now the rating is overwhelmingly Sell- is it time to buy?Note
Sure enough it was time to buy, from the day of the previous comment (Jul 28) IWM headed up and never looked back. Per the initial post we made the 52-week high today.
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