Hi Guys,
The chart that is posted with this article was the same one I posted a few months ago except it is now on weekly timeframe and I have added the two lines to show price movement since then that has created a rising wedge.
The bottom yellow zone did offer resistance and sell setups.
The index is now heading into what I believe may be another strong resistance zone where we may get opportunity for nice risk to reward sell setups. The wedge leads into the xone and also the 0.786 fib retracement from alltime high to bear market low. Price is currently very close to the 61.8 retracement so may or may see some resistance around this area.
The 27 December 21 weekly candle is where I think premium sell opportunity will be as its an untested weekly order block and the top of it right at the 0.786 retracement level. The 11 April 22 candle was also a weekly order block and that candle formed the resistance zone that ensured the Russel was stuck in a range for almost two years. I'm not sure we will get that sort of resistance here but I am confident that we will get a nice reaction once price enters this zone.
The black line running through the chart is the Anchored VWAP from its high and as can be seen is providing strong support.( I wrote a blue text box when I first did the chart regarding the AVWAP and didnt put another text box this time because the chart is starting to look messy as it is) . Firstly on 15 January together with the Anchored VWAP from the low (red line and the 50 dma( orange line) and then again on 15 April together with the 200dma (purple line). Moving forward the two anchored VWAPs will be good reference points for potential support along with the dmas and price support and demand zones.
Price is getting closer to the apex of the wedge it has created and it will be interesting to see what plays out in the coming weeks/months for the Russell 2000.
Safe trading all
The chart that is posted with this article was the same one I posted a few months ago except it is now on weekly timeframe and I have added the two lines to show price movement since then that has created a rising wedge.
The bottom yellow zone did offer resistance and sell setups.
The index is now heading into what I believe may be another strong resistance zone where we may get opportunity for nice risk to reward sell setups. The wedge leads into the xone and also the 0.786 fib retracement from alltime high to bear market low. Price is currently very close to the 61.8 retracement so may or may see some resistance around this area.
The 27 December 21 weekly candle is where I think premium sell opportunity will be as its an untested weekly order block and the top of it right at the 0.786 retracement level. The 11 April 22 candle was also a weekly order block and that candle formed the resistance zone that ensured the Russel was stuck in a range for almost two years. I'm not sure we will get that sort of resistance here but I am confident that we will get a nice reaction once price enters this zone.
The black line running through the chart is the Anchored VWAP from its high and as can be seen is providing strong support.( I wrote a blue text box when I first did the chart regarding the AVWAP and didnt put another text box this time because the chart is starting to look messy as it is) . Firstly on 15 January together with the Anchored VWAP from the low (red line and the 50 dma( orange line) and then again on 15 April together with the 200dma (purple line). Moving forward the two anchored VWAPs will be good reference points for potential support along with the dmas and price support and demand zones.
Price is getting closer to the apex of the wedge it has created and it will be interesting to see what plays out in the coming weeks/months for the Russell 2000.
Safe trading all
Trade active
Note
BOS 5 minute time frameTrade closed manually
Unfortunately the highlighted weekly order block was violated. Russell 2000 made history today by doing so. The Russell 2000 closed 4.4 standard deviations above its 50 day MA
NO other major US index (Dow since 1900, S&P 500 since 1928, and Nasdaq since 1971) has ever closed at that much ofan extreme.
(Source ... RUSSELL 2000 Historical Daily OB/OS Readi Bespokepremium.com)ngs @
Note
Next possible resistance zones2299 - 2303
2322 - 2348
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.