- Trend channel identified on the 4-hourly chart.
- Analysis of the order block on the 15-minute chart.
Trend Channel Analysis
Looking at the 4-hourly chart, there is a strong bullish channel that we can take note of. Currently, the price of RTY is trading around the low of the channel, and it may be ideal to look for bullish candlestick patterns with the expectation of a move back up to around 1,891.6.
If the channel fails, the first target bears would be eyeing out is 1,767.8, and if that doesn’t hold, $1698.8 could be the next stop. This outcome is unlikely as the FED has hinted at slowing down interest rate hikes and easing the aggressive monetary policies we’ve seen this year, with the market pricing in a 50% hike.
Order block On The 15 Minute Chart
A few weeks ago, we interviewed a trader whose strategy focused on order block trading. You can go here to learn more about the trader and his style.
There is an order block at 1,830.8 that could be the area of accumulation for bulls. Considering the trend channel above, it may be a great entry point, but that’s only if the price falls back to those levels. At the moment, all markets are waiting patiently on the Fed’s minutes in the second week of December, and since the holiday season is around the corner, markets are subdued.