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IShares Russell 2000 Fund (NYSE: IWM) Approaching Resistance

|Includes:iShares Russell 2000 ETF (IWM)

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.

Stocks: IWM