Short term daily posture of NYSE listed IShares Russell 2000 ETF with a failed breakout worth noting. A top without a doubt. So far, it is a flat top (congestion, trading range) within a major uptrend.How (continuation or reversal) this congestion resolves itself will have implications going forward in larger time frames. One may construct the weekly chart of IWM and note further levels of support if they wish in case decline continues. I will only look at the short term technicals of it with this post.
Box of Tricks which defines our congestion. Down bar on heavy volume at the penultimate candle and a follow-through at the current session may suggest a test of the support. Cluster of Box support and 200 day SMA is worth watching from here on. We could mark that level (160) and keep an eye on it. OBV is still flat with no conclusive clues from it so far. RSI has entered in bearish territory!
Chart with safety.
Chart is courtesy of StockCharts.com
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