June 1, 2011
Shares of the small cap ETF Ishares Russell 2000 Fund (NYSE: IWM) reversed their downward trend in heavy trading on Tuesday, May 31.
After a steady one month decline in prices, IWM moved higher last week but on Tuesday, May 31 broke decisively above the falling trend resistance line that had held prices in check since May 2.
Will this rally return IWM to its highs, or to new highs?
There is resistance ahead first at $85.53, the closing high reached on May 10. Prices reversed to the downside after that high was reached.
Should IWM surpass $85.53 on a closing basis, look for a test of the prior 2011 highs in short order.
Support for this rally is currently at $83.00 a share.
The Fibtimer.com (http://www.fibtimer.com) ETF Timing Strategy holds a position in the Ishares Russell 2000 Fund.