RTY runs into sellers around 1355.77 for the third day in a row
Russell 2000 Index (RTY) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, RTY ended the week 7.84% higher at 1355.53 after gaining $7.97 (0.59%) today ahead of tomorrow's Memorial Day market holiday. Today's close at 1355.53 marks the highest recorded closing price since April 29th. Trading up to $11.27 lower after the open, the stock index managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Thursday's high at 1354.65, Russell 2000 confirmed its breakout through the previous session high after trading up to $1.12 above it intraday.
Daily Candlestick Chart (RTY as at May 22, 2020):
Friday's trading range has been $17.64 (1.31%), that's far below the last trading month's daily average range of $37.30. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for RTY.
The Russell ran into sellers again today around 1355.77 for the third trading day in a row after having found sellers at 1354.65 in the prior session and at 1353.38 two days ago. The last time this happened on May 12th, RTY lost -3.32% on the following trading day.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Further buying could move prices higher should the market test April's close-by high at 1373.39.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bullish Intraday Reversal" stand out. Its common bullish interpretation has been confirmed for Russell 2000. Out of 391 times, RTY closed higher 56.01% 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 58.82% with an average market move of 0.64%.