Chart Chatter: $RUT

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A couple of weeks ago we mentioned this in regards to $RUT: “recent highs have seen a divergence in volatility compression. No new lows on the volatility index were achieved, which could suggest a change in character. Also $RUT failed to tag the upper trend line when making the most recent highs. This could be suggestive of waning strength“.

We showed this chart:

Since then $RUT has indeed weakened considerably and $RUT has broken its wedge to the downside:

We can also observe that $RUT’s underlying volatility index as broken to the upside.

On the 2 hour chart we can note the most oversold readings since February:

There is support here in this vicinity including the .236 fib level which currently is being tested:

$RUT is also trading outside of its daily Bollinger band for the 2nd day in a row, hence this could be a bounce zone.

On a further breakdown there is very strong support confluence at the .382 fib near 1620/1621.

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Categories: Chart Chatter

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  1. Chart Chatter: $RUT – NorthmanTrader


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