Technical Analysis Overview:
4-Hour Chart:
* Trend: IWM is recovering within a rising channel, currently testing resistance near $220.
* Indicators:
* MACD: Bullish momentum continues with a positive histogram.
* Stochastic RSI: Overbought at 88, indicating potential short-term consolidation or pullback.
30-Minute Chart:
* Price Action:
* IWM is consolidating near $220, just under key resistance at $221.
* Support at $218 has held steady, showing buyer strength at lower levels.
* Volume: Moderate, consistent with the ongoing recovery.
Key Levels to Watch:
Support Levels:
* $218: Immediate support zone, aligning with GEX7.
* $216: Secondary support, coinciding with the 3rd PUT Wall.
* $215: Strong support near the HVL.
Resistance Levels:
* $220: Immediate resistance, aligning with the highest positive NETGEX.
* $221-$223: Key resistance zone, highlighted by the 3rd CALL Wall.
* $227.5: Major resistance aligning with prior highs.
GEX Insights:
Key Gamma Levels:
* Positive Gamma Walls (Resistance):
* $220: Highest positive NETGEX and immediate resistance.
* $221: 24.67% GEX (3rd CALL Wall).
* $223: 3.14% GEX (2nd PUT Wall).
* Negative Gamma Levels (Support):
* $218: Support backed by GEX7 (7.71%).
* $216: Key PUT Wall support (-0.7% GEX).
* $215: Strong support with HVL alignment.
Options Metrics:
* IVR: 34.2, indicating moderate implied volatility.
* IVx: 29.3, close to average, suggesting stable conditions.
* Call/Put Bias: PUTs dominate at 6.6%, showing caution in the market.
Trade Scenarios:
Bullish Scenario:
* Entry: Above $220 with volume confirmation.
* Target: $221-$223.
* Stop-Loss: Below $218 to limit downside risk.
Bearish Scenario:
* Entry: Rejection at $220 or a breakdown below $218.
* Target: $216-$215.
* Stop-Loss: Above $221 to control losses.
Directional Bias:
* IWM's consolidation near $220 suggests bullish momentum, but the resistance zone at $220-$221 is critical. A breakout could lead to a rally toward $223 and possibly $227, while a failure to clear resistance may result in a pullback to $218 or lower.
Conclusion:
IWM is at a pivotal resistance zone near $220. A breakout could signal further bullish continuation, while a rejection might trigger consolidation or a retracement. Traders should closely monitor volume and price action for confirmation.
Disclaimer: This analysis is for educational purposes only and does not constitute financial advice. Always conduct your research and trade responsibly.
4-Hour Chart:
* Trend: IWM is recovering within a rising channel, currently testing resistance near $220.
* Indicators:
* MACD: Bullish momentum continues with a positive histogram.
* Stochastic RSI: Overbought at 88, indicating potential short-term consolidation or pullback.
30-Minute Chart:
* Price Action:
* IWM is consolidating near $220, just under key resistance at $221.
* Support at $218 has held steady, showing buyer strength at lower levels.
* Volume: Moderate, consistent with the ongoing recovery.
Key Levels to Watch:
Support Levels:
* $218: Immediate support zone, aligning with GEX7.
* $216: Secondary support, coinciding with the 3rd PUT Wall.
* $215: Strong support near the HVL.
Resistance Levels:
* $220: Immediate resistance, aligning with the highest positive NETGEX.
* $221-$223: Key resistance zone, highlighted by the 3rd CALL Wall.
* $227.5: Major resistance aligning with prior highs.
GEX Insights:
Key Gamma Levels:
* Positive Gamma Walls (Resistance):
* $220: Highest positive NETGEX and immediate resistance.
* $221: 24.67% GEX (3rd CALL Wall).
* $223: 3.14% GEX (2nd PUT Wall).
* Negative Gamma Levels (Support):
* $218: Support backed by GEX7 (7.71%).
* $216: Key PUT Wall support (-0.7% GEX).
* $215: Strong support with HVL alignment.
Options Metrics:
* IVR: 34.2, indicating moderate implied volatility.
* IVx: 29.3, close to average, suggesting stable conditions.
* Call/Put Bias: PUTs dominate at 6.6%, showing caution in the market.
Trade Scenarios:
Bullish Scenario:
* Entry: Above $220 with volume confirmation.
* Target: $221-$223.
* Stop-Loss: Below $218 to limit downside risk.
Bearish Scenario:
* Entry: Rejection at $220 or a breakdown below $218.
* Target: $216-$215.
* Stop-Loss: Above $221 to control losses.
Directional Bias:
* IWM's consolidation near $220 suggests bullish momentum, but the resistance zone at $220-$221 is critical. A breakout could lead to a rally toward $223 and possibly $227, while a failure to clear resistance may result in a pullback to $218 or lower.
Conclusion:
IWM is at a pivotal resistance zone near $220. A breakout could signal further bullish continuation, while a rejection might trigger consolidation or a retracement. Traders should closely monitor volume and price action for confirmation.
Disclaimer: This analysis is for educational purposes only and does not constitute financial advice. Always conduct your research and trade responsibly.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.