Last
Friday, the Russell 2000 didn’t move much as the lack of bullish catalysts and some
profit taking in the major indices led to a rangebound price action. On the
economic data side, we got another slate of strong data last Thursday with the US
Jobless Claims and US PMIs beating
expectations. The Fed members continue to repeat that they want to see a couple
more of inflation reports before deciding on rate cuts, but they keep on
reiterating that cuts are coming this year. Overall, the path of least
resistance remains to the upside.

Russell 2000 Technical
Analysis – Daily Timeframe

On the daily chart, we can see that the Russell
2000 pulled back into the red 21 moving average recently
where we found some buyers. At face value, the chart looks like a double top, but
notice also that the price has been printing higher lows, which is indicative
of a bullish bias. The buyers for now are in control and we can expect another
extension to the upside to try again a breakout. The sellers, on the other
hand, will need the price to make a new lower low to invalidate the bullish
setup and turn the trend around.

Russell 2000 Technical
Analysis – 4 hour Timeframe

On the 4 hour chart, we can see that we have a trendline defining
the current bullish trend with the buyers continuing to bid up the price into
the 2073 high. In case we get a pullback from these levels, we can expect the
buyers to step in again around the trendline. The sellers, on the other hand,
will want to see the price continuing lower and breaking below the trendline to
confirm the double top and target the 1920 support first
and after a further break lower, the 1820 level next.

Russell 2000 Technical
Analysis – 1 hour Timeframe

On the 1 hour chart, we can see that the
moving averages crossed to the upside recently as the price continued to print
higher highs and higher lows. The buyers should pile in around these levels
with a defined risk below the most recent swing low at 2004. In case the price
breaks though, the buyers will have another opportunity at the trendline with
an even better risk to reward setup.

Upcoming
Events

This week we have some important economic data on the
agenda. We begin tomorrow with the release of the US Consumer Confidence
report. On Thursday, we will see the US PCE and the latest US Jobless Claims
figures. Finally, on Friday, we conclude the week with the US ISM Manufacturing
PMI.

• SEO Powered Content & PR Distribution. Get Amplified Today.
• PlatoData.Network Vertical Generative Ai. Empower Yourself. Access Here.
• PlatoAiStream. Web3 Intelligence. Knowledge Amplified. Access Here.
• PlatoESG. Carbon, CleanTech, Energy, Environment, Solar, Waste Management. Access Here.
• PlatoHealth. Biotech and Clinical Trials Intelligence. Access Here.
• Source: https://www.forexlive.com/technical-analysis/russell-2000-technical-analysis-20240226/