Russell 2000 Technical Analysis – The key resistance is now is sight

<p>The market continues to march higher as the war in
Israel hasn't spread to other Arab countries. In fact, yesterday the <a href="https://www.forexlive.com/news/early-us-intel-shows-iran-leaders-surprised-by-hamas-attack-20231011/">US intelligence has even reported</a> that
Iran was surprised by the Hamas attack. This has weighed on Crude Oil prices
and eliminated the risk of a much bigger spike. Moreover, the <a href="https://www.forexlive.com/news/us-september-ppi-22-vs-16-expected-20231011/">US PPI</a> report
yesterday beat expectations, but it was mainly energy driven and the market
brushed it aside as we got a big drop in Oil prices in October and even <a href="https://www.forexlive.com/centralbank/feds-waller-we-will-see-how-higher-long-term-rates-feed-into-fed-policy-20231011/">Fed's Waller</a> sounded
like a rate hike in November is not coming unless we get a very ugly CPI
report. </p><p>Russell 2000 Technical
Analysis – Daily Timeframe</p><p>On the daily chart, we can see that the Russell
2000 continues to rally towards the key 1820 <a href="https://www.forexlive.com/Education/technical-analysis-support-and-resistance-20220405/">resistance</a> zone
where we have the <a href="https://www.forexlive.com/Education/technical-analysis-confluence-20220318/">confluence</a> with the
<a href="https://www.forexlive.com/Education/technical-analysis-trendlines-20220406/">trendline</a> and the
50% <a href="https://www.forexlive.com/Education/technical-analysis-using-fibonacci-retracements-20220421/">Fibonacci retracement</a> level.
This is where we can expect the sellers to step in with more conviction to
position for another drop into the lows. </p><p>Russell 2000 Technical
Analysis – 4 hour Timeframe</p><p>On the 4 hour chart, we can see that we got a break
above the minor downward trendline and the resistance around the 1760 level
which increases the odds of further upside into the 1820 resistance zone. The
buyers are likely to keep on piling in around these levels to position for
another impulse to the upside before taking some off the table near the major
trendline. </p><p>Russell 2000 Technical
Analysis – 1 hour Timeframe</p><p>On the 1 hour chart, we can see more
closely the support around the 1760 level where the buyers had also the confluence
with the 38.2% Fibonacci retracement level and the red 21 <a href="https://www.forexlive.com/Education/technical-analysis-understanding-moving-averages-20220425/">moving average</a>. A
break of the most recent high should see the bullish momentum increasing until
the Russell 2000 reaches the 1820 resistance zone. The sellers will be waiting
at the 1820 resistance zone, but we might see them piling in already if the
price drops from here and falls back below the 1760 support and the trendline
maybe because of a hot CPI release. </p><p>Upcoming
Events</p><p><a href="https://www.forexlive.com/EconomicCalendar">Today</a> we will get the most important report of the
week, that is the US CPI report. The market is likely to focus on the core
measures and react positively to lower than 0.4% monthly rate readings. At the
same time, we will also see the latest US Jobless Claims data which is an
important labour market report. Tomorrow, we conclude the week with the
University of Michigan Consumer Sentiment report. </p>

This article was written by FL Contributors at www.forexlive.com.