RTY climbs to highest close since December 12, 2018
Russell 2000 Index (RTY) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
Moving higher for the 6th day in a row, RTY ended the week 4.83% higher at 1447.38 after edging higher $1.95 (0.13%) today. Today's close at 1447.38 marks the highest recorded closing price since December 12, 2018. Trading up to $6.99 lower after the open, Russell 2000 managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Thursday's high at 1445.78, the market confirmed its breakout through the prior session high after trading up to $2.50 above it intraday.
Daily Candlestick Chart (RTY as at Jan 11, 2019):
Friday's trading range has been $10.83 (0.75%), that's far below the last trading month's daily average range of $32.40. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for RTY.
Prices are trading close to the key technical resistance level at 1465.25 (R1). After having been unable to move above 1445.78 in the previous session, the Russell ran into sellers again around the same price level today, missing to move higher than 1448.28.
Although the index is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Selling might accelerate should prices move below the nearby swing low at 1424.54 where further sell stops could get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "6 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Russell 2000. Out of 23 times, RTY closed higher 52.17% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 69.57% with an average market move of 0.72%.