The IWM has been trading inside this upward sloping wedge/bear flag for a few months. It just broke the bear flag this week and then tested the underside of it as resistance before getting rejected. This area also happens to be a golden pocket retracement zone from a Fibonacci I have drawn from the all-time highs made in November of last year to the lows made 2 months ago in April. The next probable move is back down to target 1 at the bottom of the Fibonacci retracement at $171. These golden pocket retracements have a very high probability of moving back down to the bottom of the retracement, sometimes breaking lower. This area at $171 has a lot of support but if it breaks, I expect it to come down to the orange line which is an upward sloping paralell channel that the IWM has been trading in since the financial crisis of 2008. The bottom of said channel connects the 2009 lows through the covid lows of 2020. This area also happens to be the -0.618 Fibonacci retracement area, it would be the 3rd hit of the bottom this major weekly channel and would very likely contain the lows for the current bear market.
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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.