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IWM

XBI Chart Analysis Don't own XBI. Below analysis is only for educational purpose & not a buy or sell recommendation. 1 & 2 : Double bottom test couldn't break the initial low. Confirming strength from buyers - Bullish 3: Last lower high in the downtrend & converting that resistance into support by re-testing it on low volumes - Bullish 4: Resistance confluence of consolidation high & long term trendline resistance broken with strong volumes – Bullish 5: Recently established weekly resistance level broken though more volume would be desirable – Weakly bullish 6: Long upper wick bar formed on high volume creating resistance at its high. Price later closed above it – Bullish 7: Consolidation zone 8:Long term trendline Key things to look for: A re-test of the $78-$80 area would be desirable to confirm its conversion from resistance to support. A close below the $72-$73 area would change the odds in favor of bears from bulls. Good luck!
AMEX:XBI
by Venkat_014
Analysis of IWM(Russell 2000)Disclaimer - I don't share of IWM ETF. This analysis is not a trading or investment recommendation & is only for educational purpose. 1.IWM has been in a lower high lower low structure after the false break out. 2.The long consolidation support area was broken indicating that the activity during consolidation was distribution. 3.IWM has paused its downtrend & has formed a 1-2-3 structure & also evidenced through positive RSI divergence. 4.However, the current up move from a low of 188.09 is not backed by an increase in volume but a negative volume divergence has been seen which is not desired during a trend reversal. 5. Immediate major points of resistance are: a) around 204 which is point#2 of the 1-2-3 structure. b) followed by the $208 level which is the bottom of the consolidation area that has turned from support into resistance. c) 200DMA around $222 d) Last major lower high around $227 e) Consolidation high around $233 f) False break out high around $245. Those following harmonics would also notice that IWM has formed a 1.618AB = CD pattern Finally, a breakout above $245 starts a brand-new up trend from the Russell. If IWM crosses the $222-$230 area & sustains itself above the 200DMA, we could see a change in the overall trend from negative to positive however it will still face strong headwinds from the resistances above $230. All the best!
AMEX:IWM
by Venkat_014