After breaking down below this 60-min rising wedge earlier today, IWM (Russell 2000 Small Cap ETF) has just hit the first support level where a minor bounce is likely before a resumption of the downtrend. The 60-minute chart below list my preferred & potential targets, for anyone currently short the small caps or planning to be. FWIW, I think that IWM offers an objective short entry or add-on here (currently trading at 145.07 now as I type) & will continue to do so on any additional upside from here, at least until the close today.
IWM 60-min Jan 22nd
Just passing this along as an unofficial trade idea for now since a short on IWM would trade roughly in line with the active QQQ short trade although I wanted to get these targets out there for anyone interested. Also, these are ‘unadjusted’ price targets, meaning that the actual support levels where I expect a reaction are listed. For the official trades & my personal trades, I usually cover a short trade slightly above the actual resistance level where I expect prices to reverse in order to minimize the chances of slightly missing a fill on my buy-to-cover order if the buyers step in early.