A double top in the US2000After going back to the 2021 highs Russell 2000 is selling off. The entire pattern appears like a expanding triangle. We can go back to test the lower line of the expanding pattern if this is a massive topping process
Market insights
Breakout now round the cornerRUT CMP 2260
International mkts are an imp piece of the mkt puzzle. Before any major fall one of these mkts will be off the track. That's an early clue to leave the ship.
This is the small cap index of US and I had posted that this Index is all set to make new highs. A strong candle this month is a confirmation of my reading. The strong uptrend has just resumed. So if ur worried about all time highs and valuations etc these charts are still not raising any red flags so sit back and relax and enjoy the new highs and utilize the dips tp buy.
The Index at breakoutThis is the small cap Index in US. The small cap Indices are always a bit ahead of the broader mkts. Hence imp to watch them.
Fib Analysis- The pull back to 38.2% is telling me the trend is very strong. That the bulls have been able to regain the top of the range in two candles is strength. To me the Index is at its most imp resistance.
RSI- the oscillator taking support above the bull range is telling us the trend is intact.
Conclusion- the bears will try to regain control here. So we may get some correction but it will be an opportunity to buy. 1997 is the zone to watch now. Thats the breakout.
Russell2000Russell 2000 now trading at support zone 1640/1700 if not close below then again seen up side
Russel 2000 Be watchful. Index is severally fall. Hourly time frame is showing mild recovery. Don't make any long position unless and until Index closed above 1794 aka 1800 level on daily closing basis.
For newbies , don't enter in the market. As, Market may not fall immediately from this level ( psychological level of 1700) and market may not sustain at higher level too.
This is only for education purpose.
Rare Example of Broadening formation where Base didn't break #RABT - Right Angled Broadening Triangle
