Q1 was a disaster. The good part here is, that it goes for all asset classes. Three important price levels for the US2000: 1900, 2300, 2450 to look at:
Russel 2000 actually looks good and shows decent fundamentals.
Bullish RSI to Price Action ratio, as well as High Volume on hitting the temporary low level 1900. This support level was hit a few times and held.
To the upside:
Local high 2450, big resistance level at 2300.
Two scenarios are possible:
1. Until 2023, creating range (1900-2450 ) retesting over and over the resistance to the upside at around 2300, maybe even cracking it and retesting 2450 and create higher high (200 MA retest in addition favors this move)
2. Going sideways, with the option of retesting lower support levels, especially pre-covid highs at 1700.
Analysts are talking about inflation and recession, the war in Ukraine as well as covid still around creating an overall skeptical atmosphere in the markets. FED, China, and Europe are struggling with the past years of QE and fiscal stimulus.
Earnings season is right now and it is a mixed picture of reports. Very hard to unravel...
Anyway: In my opinion, Russel 2000 could become a good trade getting it at 1900 Levels and making 25% gains when retesting 2450 within months?
For me a good risk to profit ratio. This is no advice here. Just sharing thoughts on a theoretical basis.
What do you think about this? Will the world economy go up, or down this year, or maybe sideways? Think Russel could make it to higher than 2450?
All the best,
GQT
Russel 2000 actually looks good and shows decent fundamentals.
Bullish RSI to Price Action ratio, as well as High Volume on hitting the temporary low level 1900. This support level was hit a few times and held.
To the upside:
Local high 2450, big resistance level at 2300.
Two scenarios are possible:
1. Until 2023, creating range (1900-2450 ) retesting over and over the resistance to the upside at around 2300, maybe even cracking it and retesting 2450 and create higher high (200 MA retest in addition favors this move)
2. Going sideways, with the option of retesting lower support levels, especially pre-covid highs at 1700.
Analysts are talking about inflation and recession, the war in Ukraine as well as covid still around creating an overall skeptical atmosphere in the markets. FED, China, and Europe are struggling with the past years of QE and fiscal stimulus.
Earnings season is right now and it is a mixed picture of reports. Very hard to unravel...
Anyway: In my opinion, Russel 2000 could become a good trade getting it at 1900 Levels and making 25% gains when retesting 2450 within months?
For me a good risk to profit ratio. This is no advice here. Just sharing thoughts on a theoretical basis.
What do you think about this? Will the world economy go up, or down this year, or maybe sideways? Think Russel could make it to higher than 2450?
All the best,
GQT
May the force be with you