Recap
We covered the underperformance in RTY futures a few weeks ago and said that we were getting close to the time that RTY needs to catch up to the greater market. It looks like we are finally at that time now and RTY is on its way up. You can read the previous analysis here.
Technical Analysis
RTY has broken above the range bound resistance at $2,034.1. It was stuck in this range since the middle of June. Price for the Russell was just on standby as the rest of the market surged and small cap investors were lift scratching their heads. But now the tide is shifting and RTY is soaring.
The volume has confirmed the breakout, and as long as we see a weekly close in the green this week, it looks solid that the next reasonable target will be the all-time high, which is a 10% gain from here.
Trades
Price must stay above $2,034 to remain bullish. Preferably, we should see price remain above $2,150 for this break out to maintain its steam.
At the moment there are no bearish trades available unless this week paints a nasty red reversal candle.
Conclusion
Keep an eye out for volatility this week, as things could get out of hand at any moment. Make sure you are not risking more than you can afford to lose, and always think in probabilities. If you have any trade suggestions or technicals you would like to send us, please do so on our Instagram here or email jay.g@oneuptrader.com. The trader who sends the best analysis will receive a 25% discount code to use on any Evaluation.
