IWM Is A Good Short

October 7, 2014 0 Comments

It’s really hard to find anything bullish about IWM when looking at the Ichimoku chart. Let’s take a look at the daily.

IWM_DAILY

As you can see IWM gave us an indecision candle on Friday. Today it gapped up and sold off. We have a lower high and a lower low. IWM also failed to take out the 38.2 Fib level. Look for this level to hold as resistance. Price and lagging line are below the cloud as well.

The 1 hour chart is where it get interesting.

IWM-ONE_HOUR

Look at how IWM has traded off the cloud in the past. Any and all bounces to the cloud have been a great short. We are at the cloud again. I would be fine with a bounce to the top of the cloud as we got at the 115 level. In fact that is what I want as that will be a low risk / high reward PUTS play.

So what about the 10 minute Ichimoku chart?

IWM-10MIN

The 10 minute is not bullish either. IWM sold off then bounced off the bottom of the cloud and the top of the cloud acted as resistance. Once the lagging lines breaks the cloud it’s game over on IWM on the intraday chart. Just be careful as it may hook, but we still have the resistance on the one hours chart.

Summary: I am fading any bounces on the IWM tomorrow.  Will also short when lagging line closes below the cloud on the 10 min. Not much to get excited about if you are a bull.

If Ichimoku charts are new to you and you would like to learn more, please signup for our nightly email or contact me by the contact form. Ichimoku crushes IWM with rock solid buy and sell signals. I swing trade the IWM off the 1 hour Ichimoku chart and day trade it off the 10 min while looking at price on the 1 hour.

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