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.)
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.
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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