Russell 2000 Technical Analysis | Forexlive
Yesterday,
the Russell 2000 rallied strongly erasing all the losses from the hot US CPI
release. It looks like the market can look through some higher-than-expected
inflation prints as long as growth remains stable, and the Fed doesn’t embark
on another tightening process. Therefore, it might be better to focus more on
growth related data rather than inflation figures unless there’s a serious
reacceleration in inflation that forces the Fed to reverse course and hike
rates again.
Russell 2000 Technical
Analysis – Daily Timeframe
On the daily chart, we can see that the Russell
2000 broke through the key resistance on
Monday but got smacked back down on Tuesday following the hot US CPI report.
The market yesterday managed to rally again and it’s now testing the
resistance. It looks like there’s going to be a strong battle here between
buyers and sellers with the former targeting a breakout and the latter aiming
for a selloff back into the support.
Russell 2000 Technical
Analysis – 4 hour Timeframe
On the 4 hour chart, we can see that the price
action has pretty choppy and erratic between the resistance and the support.
There’s not much to do here other than waiting for a clear breakout or “playing
the range” by buying at support and selling at resistance.
Russell 2000 Technical
Analysis – 1 hour Timeframe
On the 1 hour chart, we can see that although
the price action has been rangebound, the market kept on printing higher highs
and higher lows which could be a sign that the buyers might be able to break
above the resistance eventually and extend the rally into new highs.
Upcoming
Events
Today we will see the latest US Jobless Claims
figures and the US Retail Sales data, while tomorrow we conclude the week with
the US PPI and the University of Michigan Consumer Sentiment survey.