Russell 2000 Technical Analysis | Forexlive
On the daily chart below, we can
see that the price has broken below the 1920 support that was previously a strong
resistance on the way up. The moving
averages have now crossed to the downside signalling a possible change in trend.
The 1920 zone will now act as resistance and the sellers are likely to
maintain control below it. If we get a bigger pullback, the price may trade
around the 1920 and test the red long period moving average before continuing
downwards.
In the 4
hour chart below, we can see that the price has eventually breached the 1920
support as the market started to reprice a higher terminal rate and possibly
higher chances of a hard landing afterwards.
The price
has pulled back to the 1920 support now turned resistance and the red long
period moving average. We should see sellers coming in here.
In the 1 hour chart, we can see
that the confluence of the trendline, the Fibonacci
retracement levels and the 1920 resistance provide the sellers
with a strong level to lean on with defined risk above.
There’s lots of room on the
downside as the next strong support comes at 1730. Right now, the price has
been ranging a bit and it may be a good idea for the sellers to wait for the
moving averages to cross downwards before piling in.