INVT Contract WinInventergy Global Inc. has formed a bowl bottom and is retesting a key level of resistance at 1.89-1.90. We have a bull flag on the right and the price is above the yellow 13 day exponential moving average (EMA) which is a very bullish sign. INVT released a press release that will serve as a catalyst for the long side. They get to clear their balance sheets and they dont owe Panasonic a guaranteed payment for their patents. Heres the link to that press release-
us.rd.yahoo.com
Long at break above 1.92, we can possibly see 2.50 in one day, this is a low float stock that has rallied before, I recommend using less capital as the price swings are above 10% in one day. If you have etrade, schwab, td ameritrade etc. - use their trading platform as tradingview.com fails to load small cap stock price action and charts.
Smallcaps
Bull Harmonics: Retest of Dec 2014 Lows ~114.50-115, Then Bounce$TF_F $RUT The nested Bullish Shark and Bullish Alternate Bat patterns on $IWM suggest a move to 114.50-115 - late Q4 2014's lows - to fully build out. Objectives off a bounce there lie at nodes around 122 and 123.75. Further afield, there is the potential where resistance ~122 holds for a Bearish 5-0 to develop. $TF_F $RUT
Russell 2000 Looking for Lower GroundThe Russell 2000 boasts a whopping 89.27 P/E ratio and a dividend ratio of 1.36 percent. There actually is sometime that pays less than a US 10Y (for now).
Seemingly an index that is traded off of technicals, traders could see today's rapid pullback as the beginning to a larger correction. After a double-doji top, the Russell 2000 could not expand upon all-time highs (NASDAQ is next).
Price action on the daily chart was nicely confined within an ascending channel before breaking through and quickly topping. Noticeably, price action formed an ascending wedge. This is a bearish reversal pattern.
I began noticing that assets that were out of vogue, like gold and silver, were presenting descending wedges while those favored are looking toppy and forming ascending wedges. I digress.
Wedge support will be the most likely support level near 1,227, while price action will see 1,220 where price action and the 50 EMA (currently) is holding up.
Ultimately, the Russell 2000 can see sub-1,200 in mid-to-late April. Record accumulation looks to start seeing a period of distribution, and price action is switching from bullish to bearish.
Russell 2000 Index at key resistance, expecting a correctionThe Russell 2000 Index has reached important Fibonacci projection levels. We are expectiong a down wave (4) towards the 1060 area. Only a new weekly close above 1268 would invalidate this bearish scenario.
Broke down back into previous resistance zoneOn the this week's Weekly Markets Analysis newsletter, I've mentioned that 120 is a crucial level in $IWM
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Today, $IWM broke down back into previous resistance zone and closed below 120$. If the price will stay below that level, it could be a major bearish sign for the Russel.
The only thing separates $IWM from falling apart right now is the daily 200 SMA line.
If you'll check the 4H chart, you'll see that today's gap down was basically gapping down below the 4H 200 SMA line - Another bearish sign.
Still, we have a long week ahead of us.. but keep an eye on 120$ and 119$ (the zone's borders) - A breakout or breakdown of this zone could signal the next move's direction in $IWM
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Testing broken resistance - Will it hold? $IWM had a nice reversal over the last trading week, which I've i traded successfully (special alert letter was sent to the Elite Zone members - Become an Elite Zone member - www.themarketzone.net)
Now $IWM is facing the same resistance it broke during February and it should act as support (if it wasn't a false break)
120$ is the crucial zone to monitor this week
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Russell 2000 - Small caps going lower?For something on a longer time frame, here's one that I see playing out. The small caps have been diverging from the main indexes for some time now failing to make any new highs. In fact, it just broke through a multi-year trend line from 2010.
It is looking very weak on the weekly chart with an obvious RSI divergence, I think it is letting out some air and I would be careful if you're long here.
If you're looking to short this, I would really recommend waiting until it retest the multi-year trend line from underneath (first bounce back up to white line).
Small Caps Lead Into a Recovery, Also Lead into a RecessionThe Russell 2000 has seen strong moves to the downside, as market participants wonder whether or not there is a market top in place (regardless of what CNBC says),
Price action is in an important place, resting on an ascending trend line created in mid-June. A break (with a retest and rejection of new resistance/former support is best) would iniate a short position targeting 1,100 over the next couple months.
We are likely to see the more riskier equities decline as the Fed "finishes" the QE taper in October, which will likely mix sentiment among traders. The Fed's vague, nonsensical policies will play an important role.
If support holds, a retraction could be seen to a secondary descending trend (dotted).
Double zig zag done? Looks like a double zigzag is in the cards ... but could go lower for the 1,168 fib for completion. A capitulation flush and then a strong bounce up. But i'm hesitating to go in for more than a scalp here. Monday could be the day of good timing after a friday sell off before close.
Time will show
Safe trading here ladies and gents!
BM
