The Russell 2000 decline on Thursday undercut both the 200-day moving average and the MOB band price target (as shown on the chart above).
But on Friday, the day after) the small cap index recovered both indicators. And today, we have follow-through buying.
I am taking a long trade here with the expectation that the Russell 2000 can get back to the declining 50-day moving average at 2239. This level will change with time, so be best to be aware of that. Seems like a good risk/reward over the short-term. A break below 2134, or just underneath the MOB band target, would cancel the trade.
The author or his firm have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
