TRADE SETUP IWM (iShares Russell 2000 ETF)

Where do we stand fundamentally?

The iShares Russell 2000 ETF, which tracks the Russell 2000 Index of small-cap U.S. stocks, has been experiencing significant market attention lately. Small-cap stocks, as represented by IWM, have faced a challenging period, with the ETF declining for six consecutive weeks as of early March 2025—tying its longest losing streak historically. This downturn has brought it close to a technical correction, defined as a 10% drop from recent highs, and it’s nearing bear market territory after a 15% plunge from its November 2024 peak. Analysts attribute this to broader economic concerns, including uncertainty around Federal Reserve policies and potential tariff impacts under the Trump administration, which have spooked Wall Street and disproportionately affected smaller companies more sensitive to economic shifts.

IWM is testing the strong support of a broadening wedge and the channel support of 200. If we bounce from here, we could see a strong upside swing to 220.

The indicated scenario above would be invalidated only in the case of a break below 200. Acceleration higher will happen in the case of a break above 203. A confirmed bounce is required for IWM to avoid the downside continuation.

_{I am taking a near-term long-trade entry with an SL below 200 to target 210 and possibly higher. You can also trade it with options by buying call options.}