Value Area for Wednesday: 655.70-666.50

Afternoon,

The Russell 2000 opened flat today and traded in a wide range with 2 to 4 point bars. The price action formed a triangle. A break of the triangle would create our first trading opportunity. The price finally broke to the down side coming down to support and forming an IVB (inside vertical bar) at 9:45 am CST with a long entry of 645.40. The priced continued higher and traded in a tight range before breaking a trend line to the upside followed by a trader’s trick set-up at 11:12 am CST with a long entry of 663.00. The VA high was right above the entry and the trade was exited at that area for a 1 point profit. Here is the chart for trade 1 and 2.

Trade 1 and 2

Click on chart to enlarge.

The market traded up to the 127% fib area as measured from the TS pivot at 10:30 am CST (point 1) to the TS pivot at 9:48 am CST (point 2). There was an IVB that formed at 11:42 am CST with a short entry of 665.50. The market broke a trend line to the down side and had a trader’s trick set up back to the 56 EMA. The time was 12:30 pm CST with a short entry of 661.60. The final trade of the day was a trend line break to the upside above the 56 EMA followed by a trader’s trick set-up at 13:18 pm CST with along entry of 663.70. Here is the chart for trade 3, 4 and 5.

Trade 3, 4 and 5

Click on chart to enlarge.

The Russell 2000 took off to the upside and never looked back. Today trading was easier as the market trended. Looking forward to fishing at the pond again tomorrow.

Best regards,

Ron

This is not a solicitation to buy or sell. 
There is a risk in any investment