Russell 2000 Technical Analysis | Forexlive

The Russell 2000 couldn’t hold into the last Friday
gains as the price erased some of it pulling back into a key support. The first
part of the week didn’t offer any meaningful catalysts as the economic calendar
was pretty bare this week. The things should change today though as we will see
the latest US Jobless Claims data and given the recent weakness in the labour
market data, the market is likely to react strongly to this report.

Russell 2000 Technical
Analysis – Daily Timeframe

On the daily chart, we can see that the Russell
2000 eventually pulled back into the blue 8 moving average from the
overstretched levels. The price is now back to the resistance turned support and
that’s where we are likely to see the buyers stepping in with a defined risk
below the support to
position for a rally into the trendline and
aiming for a breakout.

Russell 2000
Technical Analysis – 4 hour Timeframe

On the 4 hour chart, we can see that there’s also
the 38.2% Fibonacci retracement level
for confluence. The
sellers, on the other hand, will want to see the price breaking lower to
invalidate the bullish setup and increase the bearish bets into the previous
lows targeting a break lower.

Russell 2000 Technical
Analysis – 1 hour Timeframe

On the 1 hour chart, we can see that the
short-term trend on this timeframe is downwards as the price has been printing
lower lows and lower highs. The sellers are likely to lean on the minor
counter-trendline to further increase the bearish bets into the lows. The
buyers, on the other hand, will want to see the price breaking higher to pile
in even more and target the major trendline.

Upcoming
Events

Today we have the US Jobless Claims on
the agenda, while tomorrow it will be the time for the University of Michigan
Consumer Sentiment report. The market is likely to focus on the US Jobless
Claims given the recent weakness in the labour market data. Weak figures are
likely to weigh on sentiment and push the Russell 2000 lower, while good
readings might be enough for the market to rally.