RTY runs into sellers again around 1495.15
Russell 2000 Index (RTY) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, RTY finished the month 2.71% higher at 1480.43 after losing $14.67 (-0.98%) today. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (RTY as at Jul 31, 2020):
Friday's trading range has been $37.54 (2.51%), that's above the last trading month's daily average range of $27.67. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for RTY. Prices continued to consolidate within a tight trading range between 1457.61 and 1501.86 where it has been caught now for the whole last trading week.
One bullish candlestick pattern matches today's price action, the Bullish Hikkake Pattern.
After trading as low as 1457.61 during the day, Russell 2000 found support at the 200-day moving average at 1466.89. The last time this happened on July 24th, RTY gained 1.17% on the following trading day. After having been unable to move above 1499.20 in the previous session, the market ran into sellers again around the same price level today, missing to move higher than 1495.15.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the nearby swing high at 1501.86 where further buy stops might get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Bounce off SMA 200" stand out. Its common bullish interpretation has been confirmed for Russell 2000. Out of 20 times, RTY closed higher 70.00% 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 three trading days, showing a win rate of 60.00% with an average market move of 0.27%.