A bullish continuation pattern has been confirmed for the Russell 2000, according to David Sneddon and James Gilbert at Credit Suisse in London.
Sneddon and Gilbert say the index’s recent rally has broken above the important range top at 1707/09, establishing a bullish ascending triangle continuation pattern (see Chart). Together with a larger bull triangle from May, they now see this as a signal that the core bull trend is resuming.
Resistance can be found at 1720/22, then 1742 and then 1750/52. This latter level comes from trend resistance from January as well as Fibonacci projections. Sneddon and Gilbert say the medium-term bull triangle from May gives a measured objective target of 1787/96.
To the downside, support can be found at 1707/09 and then 1699/97, which Sneddon and Gilbert say needs to hold to keep the immediate bullish move intact.