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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
Technical ANalysis of XLEDisclaimer: I don't own shares of XLE . This analysis is not a trading or investing recommendation & is only for educational purpose. 1. XLE has been going up slowly & steadily since Mar’20 after putting a bullish 1-2-3 pattern marked by the successful break of point#2 of the pattern. 2.In Jan 2022 price crossed a major downtrend resistance line (dotted line) that has been valid since July 2014. 3.Price then re-tested the resistance converted support in the week of 18-Jan-22 & failed to break the newly created support favoring the bulls. 4.Price then started moving higher on the back of massive volume & has been creating a higher high-higher low structure on the daily & weekly charts staying above 200 MA & 20 MA demonstrating a strong uptrend. 5. On the daily chart , price has been consolidating for the last couple of days above the 20 DMA & based on the strong uptrend currently in place, could take out the current consolidation resistance to move higher. 6. Price also seems to be following a channel giving an insight into potential channel support & resistance levels. With January 2022 seeing massive bullish volume , price staying above the 20 & 200 period moving averages on the daily & weekly charts & on balance volume having broken its previous resistance on the daily chart from Nov’21, the energy sector XLE has all the right ingredients to go higher in the weeks to come, to the next resistance levels of $80 followed by $84 & $91. All the best!
AMEX:XLE
by Venkat_014