📊 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.
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.
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.
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.