IWM | Key Juncture: Watching for a Rebound After Pullback 📈

This chart illustrates the daily price action of the iShares Russell 2000 ETF (IWM), highlighting critical Fibonacci retracement and extension levels. Below is the detailed breakdown:

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1. Current Price Action

• IWM closed at $228.93, up 0.20% for the day.

• Recent candlestick patterns indicate that after a strong upward move, the price is now pulling back and testing key retracement zones.

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2. Fibonacci Insights

Retracement Levels:

• 50% Retracement (223.66): Marks the midpoint of the recent rally and serves as an important support area.

• 61.8% Retracement (221.22): If price continues to decline, this will be the next major support to monitor.

Extension Levels:

• 1.618 Extension (237.71): Acted as resistance during the recent uptrend.

• 2.618 Extension (250.28): A medium-term bullish target if upward momentum resumes.

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3. Momentum Snapshot

• The sharp rally in early November indicated strong buying interest.

• The current pullback suggests profit-taking or waning momentum.

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4. Support & Resistance

• Immediate Support: $226.38 – near the 50% retracement zone.

• Resistance Levels: $232.82 and $237.71 – both aligned with Fibonacci extension targets.

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5. Technical Signals

• Yellow Shaded Area: Represents a consolidation zone, highlighting the shifting value range.

• Red Lower Curve: A projected downside path if price breaks below the value zone—signals potential further correction.

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Implications

• If IWM holds above $223.66, the bullish case remains intact, with upside targets at $237.71 and potentially $250.28.

• If price breaks below $221.22, it may suggest further weakness toward $214.30 or even lower support zones.

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Trading Strategy

Bullish Setup:

• Look for reversal signals within the current value zone.

• If support holds, consider long entries with a first target at $238, and a second target at $250.

Risk Management:

• If price breaks below $223.66, the bullish scenario weakens.

• Further downside may target $214.30, where deeper support lies.

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Conclusion

This chart suggests that IWM is at a pivotal moment, entering consolidation after a strong rally. It may be seeking a support-resistance flip zone before attempting another leg higher. The next move will depend heavily on how price behaves around current retracement levels and broader market conditions.