Good Monday, Traders!
We are seeing some of the biggest trading opportunities for the trading day and potentially for the week in small US stocks.
Small stocks tend to be outside of global turmoil, including the ongoing Ukraine conflict, and are focused on capitalizing on domestic US economic growth.
We track and trade US small stocks via the Russell 2000 Index and its corresponding futures contracts on the Chicago Mercantile Exchange (CME) under the core contract trading symbol RTY.
Today, we see that our research in the RTY contracts makes it one of our best trade ideas for the day and week.
The Trade Setup
Here’s how we see the trading chart for the RTY contract via TradingView…
And here is how we see the chart above for the RTY futures contract setting up the trade idea…
The RTY futures contract one hour time frame is in a large sideways range. The market is at the bottom of the range. The market is below the short term downtrend line. It will be a good idea to wait for the market to break and close above the short term downtrend line before looking for long ideas.
Entry: Counter trend line break bullish above the bottom of the sideways range.
Stop: In the sell zone, below the low that formed at the bottom of the range.
Limit: 2,055.70, once or if the market closes above the short-term downtrend line.
As long as the market stays above the bottom of the range, it will be a good idea to turn to the five minute time frame and look for Tunnel Trader long / Destination Trader long ideas towards 2,055.70.
For more on the markets as well as trading education and trading ideas like this one, look for the next edition of Josh’s Daily Direction in your email inbox each and every trading day.
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Keep On Trading,
P.S. Tomorrow, April 26 at 1 P.M. ET, we’re unveiling a new futures trading system…