IWM Approaching Key Support! Reversal Incoming or Further Down?📊 Technical Analysis (TA):
1. Trend & Structure:
* IWM remains in a strong downtrend, marked by multiple Break of Structure (BOS) signals.
* A recent Change of Character (ChoCH) attempt suggests a possible reversal, but confirmation is needed.
* Key Resistance: ~215-218 (supply zone)
* Support Zone: ~205-208 (current demand area)
2. Indicators Suggesting a Possible Reversal:
* MACD: Starting to flatten, showing potential for a bullish divergence.
* Stochastic RSI: Deeply oversold, indicating a potential bounce.
* Volume Spike: Increased volume at support suggests possible accumulation.
🔹 GEX & Options Flow:
1. Call Walls (Resistance) 🚧
* 218-222: Strong resistance where gamma resistance intensifies.
* 230: Major call wall, unlikely to be tested unless a strong bounce occurs.
2. Put Walls (Support) 🛑
* 205: Highest negative NETGEX, meaning a breakdown could accelerate downside pressure.
* 200-195: Next major support levels if 205 fails.
3. IV Rank & Skew:
* IVR 45.2, indicating mid-range implied volatility.
* Puts account for 34.4%, showing strong downside interest.
* Implied move ±0.32%, suggesting potential large swings.
📌 Trading Plan & Suggestions:
* Bullish Reversal Scenario:
* If IWM holds 205-208, we could see a bounce toward 215-218.
* Ideal trade: April 210C or 215C, targeting a reversal move.
* Bearish Breakdown Scenario:
* If IWM loses 205, downside targets extend to 195-200.
* Ideal Put Play: Buy March-April 205P or 200P, targeting 190-195.
⚠️ Key Warning: If IWM fails to reclaim 210 quickly, bearish momentum could extend further.
🔥 Conclusion: IWM at a Decision Zone – Bounce or Breakdown?
Russell 2000 is testing a key support area, with early reversal signals forming but heavy put positioning remains. The next few sessions will decide if we get a bounce or another leg lower. Watch price action near 205-208 closely before making a move. 🚀📉
🚨 Disclaimer:
This analysis is for educational purposes only and does not constitute financial advice. Always do your own research and trade responsibly.
