IWM at a Critical Level: Will the Momentum Continue?
Technical Analysis (TA):
1. Current Price Action:
* IWM is trading near $229.91 after a strong upward move, with a daily high of $230.36.
* The price is approaching a key resistance zone around $230, aligning with a psychological round number level.
2. Trend Analysis:
* The price has been in a clear uptrend since bouncing from the $220.64 support level.
* Higher highs and higher lows indicate continued bullish momentum.
3. Indicator Insights:
* MACD: Positive histogram values suggest bullish momentum, though the lines are starting to converge.
* Stoch RSI: Overbought at 97.57, signaling caution as a pullback could be imminent.
4. Volume:
* Increasing volume supports the recent upward move, validating the strength of the breakout.
Key Levels to Watch:
* Resistance:
* $230.36: Current high, immediate resistance.
* $235: Strong resistance, aligned with GEX Call Wall.
* Support:
* $226: Nearest support, significant from previous consolidation.
* $220.64: Critical support, aligned with highest negative NETGEX.
GEX Analysis:
1. Gamma Exposure (GEX):
* Call Wall: Positioned at $235, indicating a strong resistance level where market makers may hedge.
* Put Wall: Positioned at $220, acting as key support.
2. IVR and Options Sentiment:
* IVR: 15.5, indicating relatively low implied volatility.
* Put/Call Ratio: 14.2% puts, showcasing a predominantly bullish sentiment.
Trade Scenarios:
1. Bullish:
* If IWM breaks above $230.36 with strong volume, it could target $235.
* Entry: Above $230.50.
* Target: $235.
* Stop-Loss: $228.50.
2. Bearish:
* If IWM faces rejection at $230, it could retest $226 or lower.
* Entry: Below $228.50.
* Target: $226.
* Stop-Loss: $231.
Actionable Suggestion:
* Watch for price action confirmation at $230. Momentum traders could look for breakouts, while mean reversion traders might wait for pullbacks.
Disclaimer:
This analysis is for educational purposes only and does not constitute financial advice. Always perform your own due diligence and manage your risk carefully.
1. Current Price Action:
* IWM is trading near $229.91 after a strong upward move, with a daily high of $230.36.
* The price is approaching a key resistance zone around $230, aligning with a psychological round number level.
2. Trend Analysis:
* The price has been in a clear uptrend since bouncing from the $220.64 support level.
* Higher highs and higher lows indicate continued bullish momentum.
3. Indicator Insights:
* MACD: Positive histogram values suggest bullish momentum, though the lines are starting to converge.
* Stoch RSI: Overbought at 97.57, signaling caution as a pullback could be imminent.
4. Volume:
* Increasing volume supports the recent upward move, validating the strength of the breakout.
Key Levels to Watch:
* Resistance:
* $230.36: Current high, immediate resistance.
* $235: Strong resistance, aligned with GEX Call Wall.
* Support:
* $226: Nearest support, significant from previous consolidation.
* $220.64: Critical support, aligned with highest negative NETGEX.
GEX Analysis:
1. Gamma Exposure (GEX):
* Call Wall: Positioned at $235, indicating a strong resistance level where market makers may hedge.
* Put Wall: Positioned at $220, acting as key support.
2. IVR and Options Sentiment:
* IVR: 15.5, indicating relatively low implied volatility.
* Put/Call Ratio: 14.2% puts, showcasing a predominantly bullish sentiment.
Trade Scenarios:
1. Bullish:
* If IWM breaks above $230.36 with strong volume, it could target $235.
* Entry: Above $230.50.
* Target: $235.
* Stop-Loss: $228.50.
2. Bearish:
* If IWM faces rejection at $230, it could retest $226 or lower.
* Entry: Below $228.50.
* Target: $226.
* Stop-Loss: $231.
Actionable Suggestion:
* Watch for price action confirmation at $230. Momentum traders could look for breakouts, while mean reversion traders might wait for pullbacks.
Disclaimer:
This analysis is for educational purposes only and does not constitute financial advice. Always perform your own due diligence and manage your risk carefully.
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.