The Russell 2000 ETF (IWM) is testing critical resistance at the 160 level. The 160 resistance level has held all year so this is a major psychological level that we need to be watching.
Notice on the chart above the predicted price area of $163 to $169 if rectangle resistance is broken.
If we zoom in on the chart of IWM, notice how the $160 area has found buyers over the last 5 trading days:
With the Fed lowering rates and with markets entering the best 6 months of the year (November – April), we will likely see a breakout above $160 over the coming days and weeks.
We also have a potential Golden Cross buy signal with the 50 day MA crossing above the 200 day MA: