Russell 2000 Technical Analysis | Forexlive

Last week, the Russell 2000 didn’t move much given
the lack of economic events and the Thanksgiving holidays in the final part of
the week. The only two important reports were the US Jobless Claims and the US PMIs. The
former beat expectations across the board, while the latter came basically in
line with forecasts. This week we can expect more action with the holidays in
the rear-view mirror and some key economic releases on the agenda.

Russell 2000 Technical
Analysis – Daily Timeframe

On the daily chart, we can see that the Russell
2000 is testing the key resistance zone
around the 1820 level. We can expect the sellers to pile in here with a defined
risk above the resistance to target a drop into the upward trendline. The
buyers, on the other hand, will want to see the price breaking higher to
increase the bullish bets into the next resistance around the 1920 level.

Russell 2000 Technical
Analysis – 4 hour Timeframe

On the 4 hour chart, we can see that from a risk
management perspective, the buyers will have a much better risk to reward setup
at the trendline where we can also find the 61.8% Fibonacci retracement level
and the daily red 21 moving average for confluence. A break
below the trendline would invalidate the bullish setup and likely trigger a
selloff with the sellers adding more to their positions.

Russell 2000 Technical
Analysis – 1 hour Timeframe

On the 1 hour chart, we can see that the
recent consolidation has formed a symmetrical
triangle right below the key resistance, which was breached
last Friday. The buyers piled in on the breakout and are now targeting a break
above the key resistance. The odds are now more in favour of a continuation to
the upside given the breakout of the triangle, but the buyers will need to
break the key resistance to confirm it.

Upcoming
Events

Tomorrow, we have the US Consumer Confidence report. On
Thursday, we will see the latest US Jobless Claims figures and the US PCE
report. On Friday, we conclude the week with the US ISM Manufacturing PMI which
missed expectations by a big margin the last time.