Market Structure:
* IWM has broken its recent downtrend and is consolidating near the $225 level, supported by the 9 EMA and 21 EMA showing bullish momentum.
* A strong recovery from the $216 lows positions IWM for potential upside if resistance levels are cleared.
Key Levels to Watch:
* Support Zones:
* $224: Immediate support aligned with previous breakout levels and the Gamma support wall.
* $221: Strong support from the recent higher low.
* Resistance Zones:
* $229: Key resistance from GEX and technical confluence.
* $235: Recent highs; a breakout above could trigger further bullish momentum.
Indicator Insights:
* MACD: Bullish, but histogram indicates fading momentum; watch for potential crossover.
* Volume: Consistent buying interest; any surge in volume could signal a breakout or breakdown.
* Options Oscillator: Implied volatility is stable (IVR: 8.8), favoring controlled directional moves.
Scalping Strategy:
1. Bullish Setup:
* Enter on a pullback to $224 with confirmation of a bounce.
* Targets: $226 and $229.
* Stop Loss: Below $223 to minimize risk.
2. Bearish Setup:
* Enter on a breakdown below $224 with increased selling volume.
* Targets: $222 and $221.
* Stop Loss: Above $225 to manage losses.
3. Indicators to Use:
* Use RSI and VWAP for momentum confirmation.
* Quick trades aligned with market sentiment around GEX levels.
Swing Trading Strategy:
1. Bullish Scenario:
* Enter on a daily close above $226 with volume confirmation.
* Targets: $229 and $235.
* Stop Loss: Below $224.
2. Bearish Scenario:
* Enter if IWM closes below $224 and sustains a bearish trend.
* Targets: $221 and $216.
* Stop Loss: Above $225.
3. Indicators to Monitor:
* EMA (9/21) for momentum direction.
* MACD and RSI for trend and overbought/oversold levels.
Options Strategy Based on GEX:
1. Bullish Options Play:
* Buy a Call Option at a $225 strike expiring in 1-2 weeks.
* Target: Exit around $229 or $235 based on price movement.
* Stop Loss: Close the position if IWM drops below $223.
2. Bearish Options Play:
* Buy a Put Option at a $224 strike expiring in 1-2 weeks.
* Target: Exit near $222 or $221 for profits.
* Stop Loss: Close the position if IWM recovers above $225.
3. Neutral-to-Bullish Strategy:
* Sell a Put Credit Spread at $223/$220, taking advantage of strong GEX support at $224.
* Profit if IWM stays above $224 by expiration.
4. Advanced Gamma-Based Strategy:
* If IWM holds above $224 and approaches $229, consider selling a Call Spread at $230/$235 to capture premium while limiting risk.
Actionable Plan for IWM:
* Scalpers should focus on intraday moves around $224 and $229, watching volume spikes and RSI for momentum.
* Swing traders should look for breakouts or breakdowns with confirmation from daily candles.
* Options traders can leverage GEX insights and implied volatility for directional or premium-selling strategies.
Disclaimer:
This analysis is for educational purposes only and does not constitute financial advice. Always conduct your own research and trade responsibly.
* IWM has broken its recent downtrend and is consolidating near the $225 level, supported by the 9 EMA and 21 EMA showing bullish momentum.
* A strong recovery from the $216 lows positions IWM for potential upside if resistance levels are cleared.
Key Levels to Watch:
* Support Zones:
* $224: Immediate support aligned with previous breakout levels and the Gamma support wall.
* $221: Strong support from the recent higher low.
* Resistance Zones:
* $229: Key resistance from GEX and technical confluence.
* $235: Recent highs; a breakout above could trigger further bullish momentum.
Indicator Insights:
* MACD: Bullish, but histogram indicates fading momentum; watch for potential crossover.
* Volume: Consistent buying interest; any surge in volume could signal a breakout or breakdown.
* Options Oscillator: Implied volatility is stable (IVR: 8.8), favoring controlled directional moves.
Scalping Strategy:
1. Bullish Setup:
* Enter on a pullback to $224 with confirmation of a bounce.
* Targets: $226 and $229.
* Stop Loss: Below $223 to minimize risk.
2. Bearish Setup:
* Enter on a breakdown below $224 with increased selling volume.
* Targets: $222 and $221.
* Stop Loss: Above $225 to manage losses.
3. Indicators to Use:
* Use RSI and VWAP for momentum confirmation.
* Quick trades aligned with market sentiment around GEX levels.
Swing Trading Strategy:
1. Bullish Scenario:
* Enter on a daily close above $226 with volume confirmation.
* Targets: $229 and $235.
* Stop Loss: Below $224.
2. Bearish Scenario:
* Enter if IWM closes below $224 and sustains a bearish trend.
* Targets: $221 and $216.
* Stop Loss: Above $225.
3. Indicators to Monitor:
* EMA (9/21) for momentum direction.
* MACD and RSI for trend and overbought/oversold levels.
Options Strategy Based on GEX:
1. Bullish Options Play:
* Buy a Call Option at a $225 strike expiring in 1-2 weeks.
* Target: Exit around $229 or $235 based on price movement.
* Stop Loss: Close the position if IWM drops below $223.
2. Bearish Options Play:
* Buy a Put Option at a $224 strike expiring in 1-2 weeks.
* Target: Exit near $222 or $221 for profits.
* Stop Loss: Close the position if IWM recovers above $225.
3. Neutral-to-Bullish Strategy:
* Sell a Put Credit Spread at $223/$220, taking advantage of strong GEX support at $224.
* Profit if IWM stays above $224 by expiration.
4. Advanced Gamma-Based Strategy:
* If IWM holds above $224 and approaches $229, consider selling a Call Spread at $230/$235 to capture premium while limiting risk.
Actionable Plan for IWM:
* Scalpers should focus on intraday moves around $224 and $229, watching volume spikes and RSI for momentum.
* Swing traders should look for breakouts or breakdowns with confirmation from daily candles.
* Options traders can leverage GEX insights and implied volatility for directional or premium-selling strategies.
Disclaimer:
This analysis is for educational purposes only and does not constitute financial advice. Always conduct 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.