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$.
IWM has managed to reach the 38% retracement which was my target and I believe we could very well have seen the end of the downward correction. Worst case scenario if we break below 117.89$ (latest low) we could push towards the 61.8% retracement and the cloud support at 116$.
I believe the 118$ 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.