By Licia Leslie
September 18, 2024
Hi Shoppers,
The mantra I keep hearing is how well the small cap stocks are going to do with lower interest rates.
Perhap but let’s look at the chart:
The iShares Russell 2000 ETF (Ticker: IWM) has had a nice rally since it bounced off my support level at $204.70 taking it up to yesterday’s high at $221.80.
Yesterday’s action created a possible gravestone doji candle which could be signaling a change in this uptrend.
Of course we need confirmation with IWM trading lower today.
If IWM trades below $217.55 it could trade back down to the $209.50 level.
On a rally there is resistance at $222.45 and then $227.
Looking at Friday’s options:
Maybe a strangle is in order.
Check out the 216 puts and the 223 calls.
I would say we can move $3.50 by Friday.
Trade Review
Those XLF calls I recommended are up nearly double …
Thank You for Reading … See You Next Tuesday,
Licia Leslie
Licia Leslie
Head of Technical Analysis
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