For RUT, since it broke and closed below the rising
trendline (linking 1010/1083 lows), the first target now is 1083 area near the
50-week MA (i.e. 200 day MA on the daily chart). It was back in the summer of
2011 when RUT seriously broke through the 200 day MA and tested and the bull
channel support from 2009 low. The other times it broke the 200 day MA but
quickly reversed above it. It could do that again here this time: it first
consolidates between the 200 day and 50 day MAs before sliding through and go
for the bull channel support as shown on the weekly chart. Or it could break
through the 200 day MA quickly and go for the bull channel support. Let’s see
how it reacts here this week.
$RUT weekly chart
As shown on the weekly chart, once the 200 day MA is broken,
943 near the bull channel support (right above the 200 week MA and also near
38.2% retracement of the 602/1213 rise @ 975) could be potentially tested. That
could be a good buying area. That is about another 15% decline from last Friday’s
close at 1111.0.
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