RTY dominated by bulls lifting the market higher throughout the day

Russell 2000 Index (RTY) Technical Analysis Report for Jul 12, 2019 | by Techniquant Editorial Team


RTY dominated by bulls lifting the market higher throughout the day
RTY unable to break through key resistance level
RTY pushes through Thursday's high
RTY still stuck within tight trading range


RTY ended the week -0.36% lower at 1570.00 after gaining $12.08 (0.78%) today. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 1567.95, Russell 2000 confirmed its breakout through the previous session high after trading up to $6.53 above it intraday.

Daily Candlestick Chart (RTY as at Jul 12, 2019):

Daily technical analysis candlestick chart for Russell 2000 Index (RTY) as at Jul 12, 2019

Friday's trading range has been $15.83 (1.02%), that's slightly below the last trading month's daily average range of $16.17. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for RTY. Prices continued to consolidate within a tight trading range between 1552.40 and 1574.48 where it has been caught now for the whole last trading week.

One bullish candlestick pattern matches today's price action, the White Candle.

Unable to break through the key technical resistance level at 1571.49 (R1), the stock index closed below it after spiking up to 1574.48 earlier during the day. The failure to close above the resistance might increase that levels significance going forward. When prices bounced off a significant resistance level the last time on Wednesday, RTY lost -0.46% on the following trading day.

While 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 speed up should prices move below the nearby swing low at 1552.40 where further sell stops could get activated. As prices are trading close to July's high at 1586.77, upside momentum might accelerate should the market mark new highs for the month.

Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for Russell 2000. Out of 514 times, RTY closed higher 56.81% 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 58.75% with an average market move of 0.70%.

Market Conditions for RTY as at Jul 12, 2019

Loading Market Conditions for RTY (Russell 2000 Index)...
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