Russel 2000: Inside day and holding nearby a daily support
Retail sales in the US came in unchanged at 0.1% month-over-month in September, the same as in the previous month and missing analyst forecast of a 0.6% growth. Spending at restaurants and bars dropped 1.8%, the most since December of 2016.
Since the beginning of October, the Russell 2000 index lost over 9.0% and is in a well-established distribution phase since mid-October.
On yesterday session, the Russell 2000 went back and forward without any clear direction but closed in the middle of the daily range, in addition, managed to close within Friday’s range, which suggests being clearly neutral, neither side is showing control.
The daily stochastic is showing an extremely oversold market and is beginning to display a shy bullish momentum.
On the hourly time-frame, the US index seems to have established an upward trend line as a support and is creating higher highs and higher lows signs of a bullish trend. However, to push most of the bears into the cave it would need to close above the key level a 1,565.1, which has been a pivot point since early October.
UsaRus is a CFD written over Russell 2000 futures.
UsaRus Dec ’18 H1 Candlestick Chart
Written by Hugo O’Neill, External Analyst
*The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and as such is to be considered to be a marketing communication.
All information has been prepared by ActivTrades PLC (“AT”). The information does not contain a record of AT’s prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not a reliable indicator of futures performance. AT provides an execution-only service. Consequently, any person acting on the information provided does so at its own risk.