Chart of the day

Where do we stand fundamentally?

The iShares Russell 2000 ETF (IWM), which tracks the performance of small-cap U.S. companies, has been in the spotlight lately due to several key factors. The fund has seen positive movement in early October 2024, with its price around $219, marking a 1.40% rise recently. IWM is attracting attention as small-cap stocks typically perform better after Federal Reserve rate cuts, benefiting from a more favorable financing environment. The fund’s 52-week range has been between $161.67 and $228.63, reflecting significant volatility, likely tied to the broader market conditions and interest rate changes

IWM is retesting a strong support 215 previously broken resistance. A bounce here and a break above 225 resistance will lead to an extension in the third wave higher as the Index is finishing consolidation. Invalidation of this immediate upside extension could come upon a break below 207.

An invalidation level of a third-wave long-term extension higher and a bullish cycle continuation is 170. As said this extension higher could lead to a 260 target in the medium-term to long-term if the IWM breaks above 225 with a confirmation.

_{Try a long trade entry with a stop loss below 210 to target 260 and higher.}