Small-cap stocks have been trading sideways for eight months -- an unbearably long time in our minute-by-minute new world of trading. Finally, the technicals are looking higher for the iShares Russell 2000 ETF -- the (IWM) . Let's check out the details.
In this updated daily bar chart of IWM, below, we can see that prices have been testing the rising 200-day moving average line since the middle of July. The July dip stopped short of the 200-day line but dips in August, September and early October have actually tested the line. All these tests have been passed and all have been buying opportunities, in my opinion.
The On-Balance-Volume (OBV) line showed some weakness in June and July but that decline only gave buyers the July buying opportunity. The OBV line has been steady the past two to three months. The Moving Average Convergence Divergence (MACD) oscillator is hugging the zero line so a new buying should be coming soon.