IWM reached a new 52 weeks high a week ago at 242. After that, it has gone through a consolidation phase, as show in this tri-angle. Basically, neither seller nor buyer can break the balance.
You can see that everytime IWM touches the upper line of tri-angle, it was sold off, and every time it touches lower line of tri-agnle, it was bought up.
What does this mean?
- Pay very close attention to the possiblity of IWM close above the upper line of this tri-angle. We need a close above this line, and also a 2nd day follow up where it stays above this line to confirm the breakout. Once breakout is confirmed, 255 is the nex target, and you can go in and load TNA
- At the same time, also be careful if it breaks down on the lower side of the tri-angle, that would signal a retreat back to 228. Day trader would load put, but for this group, you just need to wait for better entry price.
This is a VERY common TA pattern. In fact, if you look at TSLA, it just breaks out its own tri-angle today (the tri-angle it has stayed in for last 4 weeks), so, 400 is a 95% probability at this poin
You can also see the same pattern on Bitcoin. I showed similar tri-angle. Bitcoin broke that tri-angle yesterday and now 115K is a lock