IWM: Bullish Pause or Stepping Stone to 50DMA?
Based on the past few months' price action, a recurring pattern has emerged: $iShares Russell 2000 ETF(IWM)$
Bollinger Band Cross:
When the price breaches the higher Bollinger Band, it tends to fall towards the 20-day moving average (20DMA), sometimes it has acted as a bouncer.
20DMA Breach:
Losing support at the 20DMA leads to a further decline towards the 50DMA as indicated in chart.
The price closed very near the 20DMA today, with the Stochastic indicator curling down, suggesting a potential loss of momentum. The 50DMA, however, is still far from the current level.
A positive factor is the presence of a solid volume base (A). While this wide base will likely cushion any pullback, it's important to note that the Point of Control (POC), a key support level mentioned over the weekend, sits at $195 and the base starts at $190.
Price has to stay above 20DMA.
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- marketpre·03-26👍LikeReport