iShares Russell 2000 Is At A Make Or Break Point

Published 07/19/2016, 01:20 AM
Updated 07/09/2023, 06:31 AM
US2000
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IWM
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There is a strong level of resistance forming overhead on the Russell (iShares Russell 2000 (NYSE:IWM)). On the RUT it is at the 1212-13 level and on IWM it needs to push through the $120s.

On numerous occasions IWM has tested this resistance level and has quickly retracted in price - oftentimes to the tune of 7-10%. Obviously, the same kind of sell-off wouldn't be seen across other indices, but it is very possible with the Russell right here. My target price would be around the $112-113 level for support off of the rising trend-line from the February lows.

If resistance is broken, I expect it to quickly convert to support as it did on the weekly chart below from February to August of last year.

IWM Weekly Chart

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