Russell 2000 futures remain in consolidation mode as the dust settles from their recent explosive upside breakout. Looking at a short-term chart, the price has moved in a triangular shape: a downward trendline starts from the Nov. 8 highs and connects with the highs from Monday’s premarket, while the early November lows to the next troughs near Nov. 10 form the lower line.
Price flirted with this lower boundary yesterday but has so far held on. If bulls regain their footing and resume the rally, important shorter-term price levels to watch in terms of support/resistance and old highs/lows include 2411, 2425, 2430, and 2440. If the price breaks to the downside, the yearly Volume Profile shows very little trading until the zone between 2340 to 2360. This area could be key for bulls to hold, as it contains the old highs from March, the double-top highs that formed in June, and the 21-day Exponential Moving Average. Beyond that, watch for the confluence of the 63-Day EMA and the 2300 level, which frequently served as resistance in the past and now flip-flops into support.
Image Sourced from Pixabay
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
