Yesterday, even when the benchmark did not hold the record levels, the hit hit a new close-up. Since the start of US trade in US-US, we have repeatedly pointed out that small-cap stocks are the best performing market segment because of their domestic focus.
This gave the Russell 2000 index immunity against the still brewing trade war. The new high of yesterday gives a bullish signal for the index.
RUT Daily
In addition to the nearby record, the small cap index completed a rising triangle, bullish in an uptrend. This pattern indicates that the demand-demand balance within the uptrend, which reached a partial equilibrium when the advance stopped when buyer pressure in the vendor area continued to run, was again tilted in favor of demand and the previous upward trend.
Both the MACD and the RSI confirm the outbreak of the prize. The MACD shows that different price averages are also bullish, because the short MA crosses the long MA. The RSI caused an upward breakthrough to a rising triangle in momentum, to reflect and support the price stimulus.
Beware of a bull trap. The full penetration rate was at least 0.9 percent, not even an aggressive filter of 1.00 percent.
Trading strategies – setting of long positions
Conservative traders must wait for a penetration of 3 percent to the top 1708.10, sticking to a return movement confirming the integrity of the pattern, with at least one long, green candle having a preceding red or small candle of any color floods.
Moderate traders may be satisfied with only a 2 percent filter and may wait for a return movement, but not necessarily to confirm the uptrend, rather than a better entry.
Aggressive traders can go long with only one outbreak of one percent.
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