IWM Eyes Resistance! Will the Bulls Break Through?Technical Analysis Overview:
4-Hour Chart:
* Trend: IWM is recovering within a rising channel, currently testing resistance near $220.
* Indicators:
* MACD: Bullish momentum continues with a positive histogram.
* Stochastic RSI: Overbought at 88, indicating potential short-term consolidation or pullback.
30-Minute Chart:
* Price Action:
* IWM is consolidating near $220, just under key resistance at $221.
* Support at $218 has held steady, showing buyer strength at lower levels.
* Volume: Moderate, consistent with the ongoing recovery.
Key Levels to Watch:
Support Levels:
* $218: Immediate support zone, aligning with GEX7.
* $216: Secondary support, coinciding with the 3rd PUT Wall.
* $215: Strong support near the HVL.
Resistance Levels:
* $220: Immediate resistance, aligning with the highest positive NETGEX.
* $221-$223: Key resistance zone, highlighted by the 3rd CALL Wall.
* $227.5: Major resistance aligning with prior highs.
GEX Insights:
Key Gamma Levels:
* Positive Gamma Walls (Resistance):
* $220: Highest positive NETGEX and immediate resistance.
* $221: 24.67% GEX (3rd CALL Wall).
* $223: 3.14% GEX (2nd PUT Wall).
* Negative Gamma Levels (Support):
* $218: Support backed by GEX7 (7.71%).
* $216: Key PUT Wall support (-0.7% GEX).
* $215: Strong support with HVL alignment.
Options Metrics:
* IVR: 34.2, indicating moderate implied volatility.
* IVx: 29.3, close to average, suggesting stable conditions.
* Call/Put Bias: PUTs dominate at 6.6%, showing caution in the market.
Trade Scenarios:
Bullish Scenario:
* Entry: Above $220 with volume confirmation.
* Target: $221-$223.
* Stop-Loss: Below $218 to limit downside risk.
Bearish Scenario:
* Entry: Rejection at $220 or a breakdown below $218.
* Target: $216-$215.
* Stop-Loss: Above $221 to control losses.
Directional Bias:
* IWM's consolidation near $220 suggests bullish momentum, but the resistance zone at $220-$221 is critical. A breakout could lead to a rally toward $223 and possibly $227, while a failure to clear resistance may result in a pullback to $218 or lower.
Conclusion:
IWM is at a pivotal resistance zone near $220. A breakout could signal further bullish continuation, while a rejection might trigger consolidation or a retracement. Traders should closely monitor volume and price action for confirmation.
Disclaimer:
This analysis is for educational purposes only and does not constitute financial advice. Always conduct your research and trade responsibly.
