The bear flag formation highlighted early today on IWM (Russell 2000 Small Cap ETF) in the trading room looks ripe for a breakdown. So far, this continuation pattern has formed as expected, with an impulsive move down on above average volume to form the "flagpole" followed by a low-volume consolidation as prices moved slightly higher in a well-defined "flag" pattern. All we need now is the catalyst for the next leg down which would be a downside break of the pattern, preferably on above average volume.
IWM Bear Flags Ripe for Breakdown
Comments are closed.