$RUSSELL in a bounce back mode. But upside is capped @ 2400 IG:RUSSELL 2000 after failing from the highs of 2400 on Dec 2024 which it revisited after 2 years the index made a low of 1700 in April which was the lows of this major cup and handle formation pattern the index has been doing for the last 2 year. We discussed this Cup and a probable handle forming in this blog space for the index IG:RUSSELL a couple of times. As the index is completing its lows of the handle formation in April and off of its lows, we can expect some major move to the upside in this relief rally for $RUSSELL. On the weekly RSI the index touched 20 which marked a multi-year over sold positioning in the index itself.
But the question is where does the index go from here ? The fundamental analysis of the Cup and handle pattern will tell us that the index must touch the top of the pattern first where the future direction will be decided. In the medium term the index must touch 2400 again before we can make a long term bullish or bearish call. For now, the upside of this handle pattern will continue.
Verdict: IG:RUSSELL can touch 2400 before facing major resistance
