May 8, 2013 (by Frank Kollar)
Shares of IShares Russell 2000 Fund (NYSE: IWM) recently broke out above their mid-march rally high on Monday, May 6th. But the current rally is approaching strong resistance.
IWM 96.54 is the 127.2% retracement resistance level and this is only a fraction from Wednesday's likely close.
The important resistance level though that we are watching is at IWM 98.56. This is the 161.8$ retracement resistance level and the most likely to cause a reversal.
Chart Courtesy of StockCharts.com
That said, a decisive close above IWM 98.56 would be a bullish indicator for this volatile and widely traded exchange traded fund.
Watch the 98.56 level for a possible reversal.
The Fibtimer.com (http://www.fibtimer.com) ETF Timing Strategy does have a position in the IShares Russell 2000 Fund.
Disclosure: I am long IWM.