Featured Trade Russell 2000 continues to exhibit short term weakness
Russell 2000 may see another downleg within medium-term range configuration.
Share this:
Short-term technical outlook on Russell 2000/US Small Cap Index (Tues 23 Apr)
click to enlarge charts
Key technical elements
- Since 12 Apr 2019, the US Small Cap Index (proxy for the Russell 2000 futures) has started to see its initial rally from 26 Dec 2019 fizzled out that make it the underperformer against the other benchmark indices; the Nasdaq 100 and S&P 500.
- The Index has started to evolve into a medium-term descending range configuration in place since 25 Feb 2019 high with its upper boundary/resistance set at 1590/1600.
- The Index has broken below a minor ascending trendline support from 25 Mar 2019 low and its key short-term resistance now stands at 1575 (the former minor swing low of 16 Apr 2019 & 61.8% Fibonacci retracement of the recent bearish reaction from the medium-term descending range resistance to yesterday, 22 Apr U.S. session low of 1553).
- Momentum indicators remain negative as the daily RSI oscillator is being capped by the corresponding descending resistance at the 55 level and the shorter-term hourly Stochastic has started in inch down from its overbought zone.
- The next significant near-term supports rest at 1530 and 1515 (61.8% & 76.4% Fibonacci retracement of the prior push up from 25 Mar 2019 low to 17 Apr 2019 high).
Key Levels (1 to 3 days)
Pivot (key resistance): 1575
Supports: 1530 & 1515
Next resistance: 1590/1600
Conclusion
If the 1575 key short-term pivotal resistance is not surpassed, the US Small Cap Index may see a further push down to target the next supports 1530 and 1515 in the first step.
However, a break above 1575 negates the bearish tone for a squeeze up to retest the medium-term descending range resistance zone at 1590/1600.
Charts are from City Index Advantage TraderPro & eSignal
Related tags:
Latest market news
Open an account in minutes
Experience award-winning platforms with fast and secure execution, and enjoy tight spreads from 0.5 pts on FX and 0.3 pts on indices.
Economic calendar
Web Trader platform
Our sophisticated web-based platform is packed with features.
Related articles
S&P 500 forecast: Stocks extend drop as correction risks grow
US and global equity markets have extended Wednesday’s sell-off, with Wall Street opening lower after a weak handover from Asia and Europe. The deterioration in risk appetite has been spreading across global markets. The dollar was firmer, Treasury yields were holding onto yesterday’s gains, while gold, silver and bitcoin were all under pressure alongside equities and major currencies.
ASX 200 Rebound Stalls Despite Wall Street Surge
The ASX 200 rebound is struggling for traction despite a powerful Wall Street rally, leaving 8800 resistance and downside risks in focus.
Nikkei threatens breakout as tech rebound broadens
Breakouts across the SOX and Nasdaq are being matched by rebounds across Asia, with the Nikkei now threatening to join the move.
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
StoneX Financial Pte. Ltd. is not under any obligation to update this report.
Trading CFDs carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit www.forex.com/en-sg/terms-and-policies for the complete Risk Disclosure Statement.