$IWM $RTY : Small Caps Ready to Explode! 💥 Small Caps Ready to Explode! 💥
We will be at ATH's this week: AMEX:IWM AMEX:TNA CAPITALCOM:RTY
While everyone is buzzing about NASDAQ:TSLA CRYPTOCAP:BTC and how they will continue to skyrocket if election results stick and continue to favor Trump, no one’s talking about SMALL CAPS! Remember, during his last term, small caps had an impressive run. Let’s dive into the technicals in my latest video.
In this video, we cover:
1️⃣ Technical Analysis: We’ll analyze charts and multiple indicators, all pointing to AMEX:IWM heading HIGHER. 📈
2️⃣ Patterns: A massive multi-year cup and handle pattern with an ascending triangle breakout is in play.
Drop a comment below if you learned something new or want to explore any topics further.
Stay tuned for more insights and show some love!
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CAPITALCOM:RTY AMEX:IWM AMEX:TNA
NFA
Iwmlong
Russell/SPX Divergence Indicating a Market Cycle TopThe stock market continues to make new highs and is finishing the final touches in this topping process. The problem is the Russell is failing to make new highs. We can see before every stock market crash was accompanied with the SPX/NDX/DJI making new highs while the Russell makes a lower high. This occurred during 2008, 2022, and it could be happening right as we speak. The Russell failing to make new highs suggest that the topping process is underway and we will be getting a powerful stock market crash.
IWMTheory is we have another leg higher to IWM here before we submit to the C wave on the very HTF cycle wave 4. I suspect this will be an expanding flat and wave B will hit close to $260-$300 before wave C runs all the wave back down to $110 finishing the 4th. Then we start the HTF wave 5 to $450-$600 per share
Next Week's IWM, 21 Day Pivot Standard Deviation RangeLooks like the medium term bias is to the downside for small caps, as we see the weekly pivot (red solid line) fall below the monthly pivot (dark solid line) with AMEX:IWM closing below both.
Both deviation boxes represent two standard deviations above and below the a moving monthly pivot. We may see demand in the lower deviation range if we fall to start off the week.
A rally to start of the week will likely be met with resistance from our pivot points and a fresh downward move from the 21 day moving average.
Investors that want to take advantage of this medium term bias could short volatility in the short term (June/July) for IWM using AMEX:TZA but bet bigger on long volatility in the longer term (September/January2025).
Take any short term gains to the upside and hold onto your short thesis heading into the second half of the year, into 2025.
🌟📈 Weekly Chart Technical Analysis for IWM! 📊💼Let's delve into the fascinating world of IWM and explore its weekly chart. Get ready for valuable insights and potential trading opportunities. 🚀📈
🔄 Cycle Analysis:
By analyzing the cycles, we've identified a cycle period of 48 weeks for IWM. Interestingly, we've divided each 48-week cycle into three distinct parts, allowing us to pinpoint key moments within the market's trajectory. Let's dive into the current cycle! 🔄📆
📈 Uptrend at 1/3 of the Cycle:
In this new cycle, IWM finds itself right at the 1/3 mark. It successfully broke out of the key resistance level at 190.8 back in December 2023, and this level has been retested, confirming its significance. As a result, we believe IWM is currently experiencing an uptrend. 💪📈
📉✅ Key Levels and Price Range:
Based on our analysis, we anticipate that over the next 32 weeks, IWM will remain within a price range of 203.54 to 228.70. Notably, the upper end of this range, 228.70, is closely aligned with the high reached in November 2021. Additionally, there is a Supply Zone located at 235.50, making this area a crucial zone to monitor. 📉🎯🔍
🔄🔎 Retracement Entry Opportunities:
For traders seeking a long entry, we recommend focusing on retracements within smaller timeframes, such as the H4 or daily chart. These retracements can provide favorable entry points with a potential profit of 12% and a risk-reward ratio of more than 2 to 1. This presents an enticing opportunity for mid-term investments. 🔄💼💰
📚🔍 Conduct Your Own Study:
As always, it's crucial to emphasize the importance of conducting your own research and analysis before making any investment decisions. Stay informed, stay vigilant, and make well-informed choices based on a comprehensive understanding of the market. Knowledge is power! 📚💡💼
Embrace the insights, seize the potential within IWM's weekly chart, and consider the captivating opportunities it presents. Remember, trading carries risks, so always exercise caution and diligence. Let's make the most of these chances and aim for profitable investments! 💪💼💹
#IWM #WeeklyChartAnalysis #UptrendForecast #RetracementEntryOpportunity #MidTermInvestment 📈🔍💱
Gap & Go to $200 perhaps?If we hold this gap area, I'm willing to bet that we might make it to $200. I just saw what NFLX is doing for earnings despite okay #s. Looking fwd to seeing what tomorrow brings. 0
*IWM = small caps (stockanalysis.com)
**TSLA earnings after hours 1/24/24 - i remember when TSLA didn't participate in a rally post COVID. When ready to rip, it will rip!!!
Calling all investors!Overview
The Russell is at a potential attractive buy area for long-term investors.
The Details
The Russell ( FX:US2000 ) stock index is in a retrace move. Price is currently between the monthly 50 and 100 SMA's.
Historically, buying when the price is between the moving averages has been a favourable entry area for long-term investments.
Things to Consider
Recession could be on the horizon for the US. This would likely drive prices lower, especially for the Russell 2000.
Using an ETC, such as IWM, is often better for investing in stock indices than futures or OTC products.
Other stock indices may decline further before reaching new highs. The positive correlation between stock indices could bring the US2000 down further.
URTY - the 3X leveraged ETF for the Russell 2000 LONGURTY seeks to yield 3X the Russell . The Russell has lagged the other major indices. This is
probably because this is a big collection of small companies which are weaker in general
and more suspectible to financial pressures like to cost of borrowing to finance growth and
so on. This week the Russell is out performing SPY, QQQ and DIA. These leveraged ETFs should
not be traded downside as the 3x causes expotential decay over time. Buy and hold will not
work well.
On the chart, the up trends as tracked by the "alpha trend" indicator are fairly obvious and
substantial. The zero lag MACD confirms buy and sell signals with K/ D line crosses. Entry
points are marked by a dramatic uptick in relative volatility making it easy to buy fast
and early in trend momentum, URTY is up nearly 20% so far in June. ( So much for sell
in May and go away). At present, it is waiting in consolidation waiting for more buyers
to step into its price action.
IWMThe set up from LT support off the bottom channel has Nuked (of course) and I say that b c this year is the year where everything looks like a perfect set up that just nukes. (except oil trades) At this point IWM can still be an over throw, if small caps are pricing in all this inflation & War in Ukraine & recession talk. If the chart is to follow NQ then we have much more pain ahead. Looking at OTC stocks I am really unsure as to how much more pain can be endured. They all seem pretty bottomed. So watching for an MM overthrow here and confirmation would be working the candle sticks back into the LT channel IMO.
IWM - P5 arrived? If so, we bounce!The #IWM has traded in a wonderful way.
Watch how the #Medianlines , the whole #Pitchfork provided support, resistance and - if you know the rules, how they could be applied to make some $s.
However, we arrived on the P5, which is potentially morphing to P0 for the next move to the upside. Alltough I personally don't believe it because of this market environment, chances are high.
...can you hear the emotions nagging on me to un-follow the rules? §8-)
If we open next week below the L-MLH, we would trade further down to the WL (Warning Line).
As far as my trades are designed, I risk tiny and try to let them run by following the rules and Money-Managent.
#iwm #medianline