Hugo
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Hugo in HTO Trading,

Russell 2000: Broke a key level and an upward trend line

Since the beginning of the year the index gained more than 4.5% however last week fell more than 2.5% and is in a well-established warning phase since early October.

Last week the index fell with a wide range and closed near the low of the week, in addition managed to close below the previous week range, which suggests a strong bearish momentum.

The stochastic is showing a strong bearish momentum and crossed below the 50 mid line.

Expecting a downward move to a key level at 1,125 (scenario 1) on a break below the weekly support at 1,169 however a break above the weekly support at 1,212 may trigger an upward move to a weekly resistance at 1,276 (scenario 2).