The current RUSSELL 2000 E-MINI contract is experiencing high volatility which is exacerbating a region of sideways consolidation. This shows there is internal instability with the valuation of some of the RUSSELL 2000’s represented companies.

RUSSELL 2000 E-MINI Analysis

The RUSSELL 2000 E-MINI current contract is in the middle of a sideways consolidating range between resistance level 1462.8 and the range high at 1745.0. Shown in Diagram A.

With the RUSSELL 2000 E-MINI finding its first test of resistance level 1462.8 in November of 2017 and then again in February of 2018 it was unable to maintain below the range median resistance level 1592.8. This allowed the RUSSELL 2000 E-MINI to sustain new higher highs and its range high in August of 2018. Shortly after the high was found there was a volatile push to retest resistance level 1462.8 in October and November of 2018. With the RUSSELL 2000 E-MINI unable to sustain above resistance level 1462.8 there was a downward push to retest a previous contract resistance level at 1263.4 in December of 2018.

With the RUSSELL 2000 E-MINI value unable to manage with a 285 point plunge it moved to retest median resistance level 1592.8. With a final stint of sideways consolidation the RUSSELL 2000 E-MINI retest resistance level 1462.8 in May of 2019. Shown in Diagram B.

Leading into current RUSSELL 2000 E-MINI projections there has been slight sideways consolidation From July 1 to July 10 of 2019. If the RUSSELL 2000 E-MINI is unable to retest and sustain above resistance level 1592.8 there will be a test of slight resistance level 1549.9 followed by a test of resistance level 1518.0. If the RUSSELL 2000 E-MINI is able to maintain above resistance level 1592.8 we will see new resistance levels form for future trading options. Shown in diagram C.

*Charts are created with TradingView, our partner in charting.
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Written by Nenad Jordanoski, Futures Trader and Technical Analyst.
Email: nj@thetrade.academy
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