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Bearish Engulfing On Russell 2000

The Russell 2000 chart formed a Bearish Engulfing candlestick pattern on Tuesday, March 19, 2019.

Chart of IWM formed Bearish Engulfing candlestick pattern on Tuesday March 19, 2019
Russell 2000 forms Bearish Engulfing which is the third bearish pattern in a row as it tests its 200 day moving average.

Notice the negative divergence between the NVI and price action which suggests smart money is lightly selling as IWM approaches 200 day moving average resistance.

But before you get too bearish about this one day candlestick pattern, check out the Bullish Harami that formed on the Russell 2000 last week.

IWM weekly candlestick chart shows Bullish Harami formed for the week ending March 15, 2019.
Bullish Harami forms on the Russell 2000 weekly chart for the week ending March 15, 2019.

The weekly chart trumps the daily chart because its the longer term trend. Notice that the Bullish Harami occurred off of the 152 area and the Kaufman Adaptive moving average which means this area is a significant pivot area to watch.

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