Technical Analysis (TA) and GEX for IWM for Dec. 20
Market Overview
IWM has been experiencing a significant downturn over the past week, reflecting broad market weakness. The ETF is attempting to stabilize after hitting critical support levels. Gamma Exposure (GEX) analysis highlights key resistance and support areas, providing insights for potential market movements.
Gamma Exposure (GEX) Analysis
* Current Gamma Profile:
* HVL (Highest Volume Level): $220, acting as a key pivot point.
* Major Resistance:
* $223: High GEX indicates strong call wall resistance; price may struggle to break this level without significant volume.
* $235: Secondary resistance aligning with historical price rejection levels.
* Major Support:
* $218: Immediate GEX support; a breakdown below this could lead to further declines.
* $215: Strong put wall and critical support, where buyers are likely to step in.
* Implied Volatility (IV):
* IV is trending lower, indicating that market participants expect reduced volatility ahead. This could signal consolidation after recent sell-offs.
Technical Analysis
1-Hour Chart Insights:
* Trend: Short-term recovery within a broader downtrend.
* IWM is showing signs of breaking out of a descending channel, indicating a potential reversal if confirmed by volume and momentum.
* Key Levels:
* Resistance:
* $223: Major hurdle; breaking above this would signal a bullish continuation.
* $226: Secondary resistance aligned with the 50 EMA.
* Support:
* $218: Immediate support from GEX.
* $215: Critical support; failure here could lead to a retest of lower levels.
* Indicators:
* MACD:
* Bullish crossover, suggesting increasing momentum for a short-term rebound.
* EMA (9 & 21):
* Price is attempting to reclaim the 9 EMA; sustained movement above both EMAs would confirm a trend reversal.
Trade Scenarios
Bullish Scenario:
* Entry: Above $220 with strong volume confirmation.
* Targets:
* First Target: $223 (GEX resistance).
* Second Target: $226 (EMA alignment).
* Stop-Loss: Below $218.
Bearish Scenario:
* Entry: Below $218 with increasing sell volume.
* Targets:
* First Target: $215 (put wall support).
* Second Target: $212 (lower GEX support).
* Stop-Loss: Above $220.
Key Takeaways
1. Consolidation Phase: IWM appears to be consolidating, with a bias toward a short-term recovery. Gamma levels are tightly aligned, indicating a range-bound market unless a breakout occurs.
2. Momentum Indicators: Bullish MACD crossover and an attempt to reclaim EMAs suggest potential for a short-term rally.
3. Critical Levels: Traders should monitor $223 for bullish confirmation and $218 for bearish signals.
Disclaimer: This analysis is for informational purposes only and does not constitute financial advice. Always conduct your own research and risk management before trading.
IWM has been experiencing a significant downturn over the past week, reflecting broad market weakness. The ETF is attempting to stabilize after hitting critical support levels. Gamma Exposure (GEX) analysis highlights key resistance and support areas, providing insights for potential market movements.
Gamma Exposure (GEX) Analysis
* Current Gamma Profile:
* HVL (Highest Volume Level): $220, acting as a key pivot point.
* Major Resistance:
* $223: High GEX indicates strong call wall resistance; price may struggle to break this level without significant volume.
* $235: Secondary resistance aligning with historical price rejection levels.
* Major Support:
* $218: Immediate GEX support; a breakdown below this could lead to further declines.
* $215: Strong put wall and critical support, where buyers are likely to step in.
* Implied Volatility (IV):
* IV is trending lower, indicating that market participants expect reduced volatility ahead. This could signal consolidation after recent sell-offs.
Technical Analysis
1-Hour Chart Insights:
* Trend: Short-term recovery within a broader downtrend.
* IWM is showing signs of breaking out of a descending channel, indicating a potential reversal if confirmed by volume and momentum.
* Key Levels:
* Resistance:
* $223: Major hurdle; breaking above this would signal a bullish continuation.
* $226: Secondary resistance aligned with the 50 EMA.
* Support:
* $218: Immediate support from GEX.
* $215: Critical support; failure here could lead to a retest of lower levels.
* Indicators:
* MACD:
* Bullish crossover, suggesting increasing momentum for a short-term rebound.
* EMA (9 & 21):
* Price is attempting to reclaim the 9 EMA; sustained movement above both EMAs would confirm a trend reversal.
Trade Scenarios
Bullish Scenario:
* Entry: Above $220 with strong volume confirmation.
* Targets:
* First Target: $223 (GEX resistance).
* Second Target: $226 (EMA alignment).
* Stop-Loss: Below $218.
Bearish Scenario:
* Entry: Below $218 with increasing sell volume.
* Targets:
* First Target: $215 (put wall support).
* Second Target: $212 (lower GEX support).
* Stop-Loss: Above $220.
Key Takeaways
1. Consolidation Phase: IWM appears to be consolidating, with a bias toward a short-term recovery. Gamma levels are tightly aligned, indicating a range-bound market unless a breakout occurs.
2. Momentum Indicators: Bullish MACD crossover and an attempt to reclaim EMAs suggest potential for a short-term rally.
3. Critical Levels: Traders should monitor $223 for bullish confirmation and $218 for bearish signals.
Disclaimer: This analysis is for informational purposes only and does not constitute financial advice. Always conduct your own research and risk management before trading.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.