IWM Fell to Bottom of Purple Rising Megaphone
NYSE:IWM returned to the bottom of its purple rising megaphone top.
Usually the price would have put in the left shoulder and head of a head and shoulders formation before this tag, and IWM has done this.
Usually, IWM would now bounce into the right shoulder of that H&S before breaking out through the bottom of the purple rising megaphone top.
It’s rare, but every once in a while, you’ll see a megaphone right shoulder form in this spot. That’s one of the few, rare ways IWM could still put in a new high, but it’s unlikely.
IWM will likely bounce off the bottom of the pink megaphone after breakout for a retest of its VWAP, then break out downwards from that too.