Update on RUT: Sep 2, 2016

When we last took a look at RUT [see: May 30, 2016 Update] it was pushing higher within a steep channel, but was going to run into resistance very soon.  I closed my eyes and threw a few darts, and this is what stuck: upside targets at 1200 and 1255.77, and a downside target at 1070 (just in case the channel broke down.)

2016-05-30 RUT daily ECU 1900

Little did I know at the time that all three targets would end up coming into play.  Here’s the same chart, updated with the price action for the three months since then.2016-09-02 RUT daily 1155

RUT reversed at 1190.17, 10 points shy of the purple target, then plunged 9% to 1085, 15 points shy of the yellow target.  It then spiked over 12% to come within 5 points of the white 1255.77 target — where it now sits.

Aside from the ugliness of the channel breakdown (Brexit) that magically healed itself a few sessions later (price manipulation) it makes for a pretty nifty Bat Pattern.

Is this the end of the road, or is RUT destined for new highs?

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