Good morning, Traders!
The RTY is blasting off like a rocket toward the top of the channel! We got the counter trendline push just as I expected. The market is headed upward toward the 2325.00 price point within the one-hour timeframe. But we could see the market run out of opportunities if it stays on its current course. Follow today’s Daily Direction to find out why!
As much as we like seeing a market head toward higher prices, we have to be careful when a market gets close to resistance. Remember that resistance is a known price point where sellers begin to take over the market and drive the price down.
When a market starts to approach a known point of resistance, we should start to watch for a coming retracement or sell-off. We don’t want to buy a market when the price is too high, or we run the risk of losing money!
Let’s take a look at the RTY’s timeframe analysis to get a better idea of where the market is headed:
Daily Timeframe Analysis
The daily timeframe for the RTY is looking very impressive. The market has clearly broken the counter trendline and is headed toward the top of the channel. But if you look closely, you’ll see that we’re approaching the daily resistance price point.
That means we’re running out of opportunities to buy the market while it rallies. Once we hit resistance, we can expect the market to sell-off. We don’t want to be caught in the middle of that if/when it hits.
The long-term direction is up for the RTY
The short-term direction of the RTY is currently up
The RTY has broken the counter trendline and entered the buy zone
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The daily timeframe shows the RTY rocketing toward the top of the channel
We know that the overall direction for the RTY is up. So a temporary price drop won’t worry us. We’ll just wait for the market to head back into a bullish push and look for chances to buy the market again!
One-Hour Timeframe Analysis
As we turn to the one-hour timeframe, we can see that the market is near resistance and looking to turn back down toward the bottom of the channel. That’s a sign that sellers are driving the price back down since we’re so close to that resistance price point.
This is where the one-hour timeframe becomes very important. We’ll watch it for signs that a sell-off/retracement is occurring, signaling that we’ve run out of opportunities to buy the RTY.
The RTY is getting very close to resistance as it approaches the 2325.00 price point
When a market drops in price, it’s important that we then look for signs that it has begun to turn around and rally again. The market moves in waves. Another rally will follow a price drop. We just have to look for signs of the market U-turning back toward the top!
The Bottom Line
While the overall direction for the RTY remains up, we’re running out of opportunities to buy the market as it approaches resistance. Our timeframe analysis will be our best tool for making sure we know when to step away from buying and prepare for whatever the market has in store for us in the coming days.
Our timeframes will give us guidance on what to do with the RTY in the coming days
But without my strategy, you’ll be adrift in a sea of confusion as the market does what the market wants. Check out my futures trading strategy to learn more about how you can start becoming a serious trader today. Take out the guesswork and start leveraging my knowledge and expertise!
Keep On Trading,
Mindset Advantage: Accept
It’s not the market. It’s not your indicator. It’s TRADING.
Let it go. The first step toward consistent profits comes when you accept the reality that losses will occur.
Prices have a mind of their own at times. The institutions are at the wheel. The sooner you accept this, the more progress you’ll make.
Look at the past, but don’t stare. Accept what’s happened and move on.
Target tighter entries. Get the heck out of those losers you’re hanging on to.
Accept. And start to enjoy trading.
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