Detailed Analysis of the Russell 2000 (IWM)
Close Price: $246.16 (-1.87) as of December 31, 2025
Short Term Outlook
The Russell 2000 ETF (IWM) has recently broken a support level, indicating a negative signal for short-term trading. The current trading range is between support at $242 and resistance at $250. A definitive break through either of these levels will likely dictate the new direction of the ETF.
Recent volatility has been noted, with a 1-day volatility of 1.04% and a 5-day volatility of 3.43%. This suggests that traders should be cautious, as the ETF is experiencing fluctuations that could lead to further declines if the support level is breached.
Medium Term Outlook
In the medium term, the Russell 2000 ETF is positioned within a rising trend channel, which indicates increasing optimism among investors. This trend suggests that, despite the recent short-term challenges, there is potential for continued growth in the coming months.
Over the past 66 days, the ETF has shown a positive return of 2.00%, which is a favorable sign for medium-term investors. The overall sentiment remains bullish, and if the ETF can maintain its position above the support level, it may continue to rise towards the resistance level of $250.
Technical Analysis Summary
| Period | Volatility | Liquidity | Change (%) |
|---|---|---|---|
| 1 day | 1.04% | 8,702.24 | -0.75% |
| 5 days | 3.43% | 5,586.40 | -2.35% |
| 22 days | 8.91% | 8,814.25 | -1.04% |
| 66 days | 17.23% | 9,724.37 | +2.00% |
Recommendation (1 to 6 months)
Investors should closely monitor the support level at $242 and the resistance level at $250. A break above $250 could signal a buying opportunity, while a break below $242 may indicate a sell signal. Overall, the medium-term outlook remains positive, but caution is advised in the short term.
Conclusion
The Russell 2000 ETF is currently facing short-term challenges but maintains a positive medium-term outlook. Investors should remain vigilant and ready to act based on the price movements around the key support and resistance levels.