$IWM Russell 2000 Resting on Heavy Support

IWM 5-09-19

Chart made with TrendSpider

Russell Testing Key Support Levels

If you follow me on Twitter, I wrote a post on Wednesday outlining my view of the key support levels being tested in the Russell 2000.

IWM

Today, IWM gapped down at the open right at 155.52, and pin-pricked swiftly and deeply right through all three levels of support – an alignment of the 50-day moving average, 200-day moving average, and 61.8% Fibonacci retracement – before recovering and closing green on the day (see chart at the very top). The price action formed a long wick hammer candle, doing exactly what it needed to send a bullish message to anyone remaining long the index. It remains to be seen if this area holds, but there is a well-defined risk-reward setup at this confluence of support.

About the author

I am the founder of fibonacci.com and an avid trader. I am also the co-founder of Texas Precious Metals, a top US precious metals company. In 2006 I was a contestant on The Apprentice with future president, Donald Trump. I live in Texas with my wife and five children, where I spend my time dodging snakes, changing diapers, and charting.

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