Small-caps have underperformed for most of 2019. However, they may be mounting a late-innings push.
Looking at the charts of the small-cap heavy iShares Russell 2000 ETF (IWM) , we can see that prices are ready for an upside breakout.
In the daily bar chart of IWM, below, we can see that prices have moved sideways for the past 9-1/2 months. Buyers came in around $145 and sellers showed up in the $160 area. Up and down and up and down but now prices are poised to break out to the upside.
IWM is above the rising 50-day moving average line and the rising 200-day moving average line. The more sensitive 50-day moving average line has just crossed above the slower-to-react 200-day line for what traders call a (bullish) golden cross. This moving average crossover system is typically late (like most moving average signals) but is can produce profits in long-trending market.
The On-Balance-Volume (OBV) line has been moving mostly sideways since March but it has improved lately and could move up to new highs to confirm a chart breakout.
The Moving Average Convergence Divergence (MACD) oscillator is above the zero line but the indicator narrowed and the next signal could be bullish or bearish depending on how prices move from here.
In the weekly bar chart of IWM, below, we can see the sideways price action we talked about above. Prices are above the rising 40-week moving average line and a weekly close above $160 should convince the bulls that are on the right side.
The weekly OBV line is steady and close to making a new high for the move up. The weekly MACD oscillator has moved up above the zero line to give us a new outright go long signal.
In this Point and Figure chart of IWM, below, we can see that the recent trade at $160.21 was a breakout on this kind of chart. A potential upside price target of $191 is being projected.