RTY dominated by bulls lifting the market higher throughout the day
Russell 2000 Index (RTY) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, RTY finished the month 3.4% higher at 1441.37 after gaining $20.16 (1.42%) today. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 1427.09, the index confirmed its breakout through the previous session high after trading up to $17.03 above it intraday.
Daily Candlestick Chart (RTY as at Jun 30, 2020):
Tuesday's trading range has been $30.94 (2.18%), that's below the last trading month's daily average range of $44.08. 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.
One bullish candlestick pattern matches today's price action, the White Candle.
Russell 2000 managed to close back above the 20-day moving average at 1436.41 for the first time since June 23rd. When this moving average was crossed above the last time on June 23rd, RTY actually lost -3.45% on the following trading day. Prices are trading close to the key technical resistance level at 1454.12 (R1).
The Russell shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might speed up should prices move above the close-by swing high at 1454.12 where further buy stops could get triggered.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Russell 2000. Out of 328 times, RTY closed higher 54.88% 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 56.40% with an average market move of 0.38%.