Regular readers know that one of the main technical analysis tools we use to track the market is the Fibonacci extension.
Our research shows that markets often interact with these levels over time, so we always try to take them into account when making decisions on direction.
Well, this week, the Russell 2000 (RTY) futures market is hitting a key Fibonacci level that could provide a clue about where the market goes from here.
With the RTY and the other major indexes back at their June lows, this level is now all the more important for traders to understand…
RTY Trying to Find Direction
Here’s how the RTY is shaping up today as it hits the 0.618 Fibonacci level that stems from the Aug. 26 high…
The RTY daily time frame is in a sideways range, with the market near the bottom of support.
It will be a good idea to stay out of the market until the market either…
A) Support holds and a bullish trend forms to push the market back towards resistance price point 1,905.
Or B) The market breaks below support and a bearish trend forms.
If a bearish trend forms, we can use a down Fibonacci to find the limit.
But at this time, it is better to be out of the market waiting for the entry signal versus to be in the market guessing the direction.
The Bottom Line
There are multiple ways to trade the futures, stock and other markets. We can trade the indexes, both up and down, as well as individual stocks…
For more on the markets as well as trading education and trading ideas like this one, look for the next edition of Josh’s Daily Direction in your email inbox each and every trading day.
I’ll be bringing you more of my stock and futures contract trading tutorials as well as some additional trading ideas.
And before you go, head on over to the Traders Agency YouTube channel for breaking market news, live trading sessions, educational videos and much, much more!
Keep on trading,
P.S. I have been working with my team to find what I call “marked stocks.”
These are stocks that are potentially setting up to generate big gains… And you need to get in on them with me.
The post Russell 2000 Hits Key Fibonacci Level appeared first on Josh Daily Direction.