IWM bullish pattern revisited

My daily analysis on Gold and the Dollar index
January 2, 2015
Greek Market analysis review
January 8, 2015

Last week I posted my analysis and bullish view on IWM with the inverted Head and Shoulders pattern with the neckline at 118. As I mentioned in my previous analysis, I was expecting a back test of the break out area and neckline at 118. This is exactly what followed as prices made a pull back with the rest of the market towards 118$.

iwm

IWM has managed to reach the 38% retracement which was my target and I believe we could very well have seen the end of the downward correction. Worst case scenario if we break below 117.89$ (latest low) we could push towards the 61.8% retracement and the cloud support at 116$.

iwm2h

I believe the 118$ level is very strong support and I do not see many chances of breaking below it. IWM price bounced strongly after reaching and back testing the neckline support at 118$. Breaking above 120.50$ will increase the chances that the low is in and a new upward move towards 124-125$ has started.

As always, thank you for taking the time to read my latest post.

Alexandros Yfantis
Alexandros Yfantis
Fascinated by financial markets, studied International Securities Investment and Banking in the UK, works as a Portfolio Manager in Greece and runs a technical analysis website. Enjoys travelling and spending time with his family and preparing for the black belt in Korean Karate.