Technical Analysis

Russell 2000 futures (RTY) runs into resistance level

  • Two trade possibilities for both the bears and the bulls in the RTY futures contract.
  • The Fed’s meeting schedule for this year.
  • Russell 2000 futures traders story about Michael Liss.

Simplify technical analysis & think in probabilities

The RTY chart is painting a picture of simplicity at the moment. The trade idea is a simple one, a 50/50 shot.

Let’s look at why.

The Russell is trading within a resistance zone at $1,897.5. This zone began back in June of 2022 and has been a turning point in the price 5 out of 6 times thus far. Keeping this in mind, there is a short trade, but there is a long trade too.

Short Trade: Taking short trades within this zone in the expectation that history will repeat itself and the level will indeed act as a turning point, traders can look for a move back down from $1,897.5 to $1,834.2, which is the 0.236 Fib level.

Long Trade: If the level fails to hold the bulls at bay, a move higher could lead to price discovery of $1,954, which is the 0.382 Fib level, and possibly even $2,050.8, which is the .50 Fib level.

Of course, this analysis does not take into account the Fed interest rate decision and conference happening on Feb 1st.

The Fed’s 2023 Meeting Schedule

  • February 1, 2023
  • March 22, 2023
  • May 3, 2023
  • June 14, 2023
  • July 26, 2023
  • September 20, 2023
  • November 1, 2023
  • December 13, 2023
RTY Daily chart showing resistance level, fibonacci levels and a potential long and short trade.
RTY Daily Chart

RTY Futures Trader

In 2009, a trader named Michael Liss was trading Russell 2000 futures at a hedge fund in New York. He made a bold bet that the market would recover after the financial crisis, and he was right. His trades brought huge profits to the fund, and he quickly gained a reputation as a skilled and successful trader. However, Liss didn’t rest on his laurels and continued to study the market and refine his strategies. He eventually went on to start his own successful hedge fund, trading primarily in Russell 2000 futures. Despite ups and downs in the market, Liss remained disciplined and focused, building a track record of consistent returns for his clients.

This shows us how beneficial it can be to focus on one market instead of branching off into many. Each market moves differently and is affected by different factors. Narrowing our focus into one means we remove distractions and learn all we need to about that specific market.