Small Stocks May Hold Opportunities

Today, we’re looking at the smaller stocks that appear to be setting up for a potential opportunity. 

These types of stocks are represented by the Russell 2000 Index (RTY). 

So let’s take a look at the Russell 2000 Index futures contracts… 

Looking at RTY Futures Contracts

Here’s how the chart is shaping up and how we see the market…

Russell 2000 Futures Contract (RTY) Price – Source: TradingView

The RTY daily time frame is in an up channel. 

The market hit the bottom of the channel and pushed bullish. The market is hitting the short term daily downtrend line where resistance can be found.

If the market is able to close above the short term downtrend line and enter into the buy zone, it is expected the market will continue to push bullish towards the top of the channel price point 2,076.3 about +1,721 ticks above the market. 

If the market is not able to close into the buy zone, it is expected the market will sell off back towards the bottom of the channel price point 1,800.00 about -1,045 ticks below the market. 

It will be a good idea to turn to the one hour time frame and to look for a trend to confirm the daily direction.

The Bottom Line

There are multiple ways to trade the futures, stock and other markets. We can trade the indexes, both up and down, as well as individual stocks… 

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.

I’ll be bringing you more of my stock and futures contract trading tutorials as well as some additional trading ideas.

And before you go, head on over to the Traders Agency YouTube channel for breaking market news, live trading sessions, educational videos and much, much more! Click here now to subscribe!

Keep on trading,

P.S. I have been working with my teammate, Ross Givens on his latest Stealth trading strategies.

To learn more, click here!

Josh Martinez

Josh Martinez

Josh Martinez is an elite Analyst who’s been actively trading the financial markets since 2011. He’s known as one the leading innovative traders in this industry due to his his cutting-edge strategies.

Josh first burst into the scene when he took an initial deposit investment of $500 and turned into over $39,000 in just under 2 years.
Josh’s trading articles have been featured in Your Trading Edge, The FX Street, Trader Planet, Forex Crunch, Trading Pub, and Equities.com.

In addition to trading, Joshua has also trained thousands of traders worldwide. His strategies and systems have helped others find success in the market

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