Technical Overview
- Trend & Moving Averages:
- The price is below both the 50-day (2,209.2) and 100-day (2,271.8) SMAs.
- The previous channel support has now turned into resistance that will need to be cleared.
- Support & Resistance Levels:
- Support:
- 2,084 (S1 Pivot) – Holding as minor support during this bounce.
- 2,003 (S2 Pivot) – A key psychological level if selling resumes.
- 1,878 (S3 Pivot) – A major downside target if lower support fails.
- Resistance:
- 2,210 (Pivot Level) – Immediate resistance and a key level to watch for a breakout.
- 2,291 (R1 Pivot) – A stronger barrier aligning with the lower boundary of the previous uptrend.
- 2,417 – 2,498 (R2-R3 Pivot Levels) – Potential longer-term recovery targets.
- Support:
Outlook & Trade Considerations
- Bearish Case:
- A rejection at 2,210 or failure to hold above 2,084 could lead to a retest of 2,003, with further downside possible.
- Momentum remains weak, and if broader risk sentiment deteriorates, the Russell 2000 could see another leg lower.
- Bullish Case:
- A move above 2,210 could trigger further upside toward 2,291, but a confirmed trend shift would require reclaiming the 2,271-2,291 zone.
- The recent bounce is constructive, but the index remains in a downtrend until key levels are reclaimed.
Outlook: The Russell 2000 futures show short-term relief but remain in a bearish structure. A move above 2,210 is necessary for further upside, while 2,084 and 2,003 are critical support levels to watch.
