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Looking at Small Stocks for Big Trading Gains

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Sometimes, big things come in small packages…

That’s especially true for small stocks, which can provide big trade opportunities. 

And today, I’m going to showcase how the big index for small stocks in the Russell 2000 Index (RTY) is setting up for some great trading opportunities.

Let’s take a look at capitalizing on what we see as a potential trade developing in RTY and review what’s happening inside the daily and hourly charts…

The Russell 2000 (RTY) Trade Setup

Here’s how the daily chart shows the potential buy trade in RTY is setting up…

Russell 2000 Index Futures Contract (RTY) Daily Price and Technical Analysis – Source: TradingView

The RTY daily time frame is in a down channel.

The market hit the bottom of the channel and is now pushing bullish towards the top of the channel price point 1,904.20, about +1,315 ticks above the market.

It will be a good idea to turn to the one hour time frame and look for low prices in the buy zone.

Next, let’s look at the hourly chart for further indications for the trade…

Russell 2000 Index Futures Contract (RTY) Hourly Price and Technical Analysis – Source: TradingView

The one hour time frame is in an up trend.

The market has an up Fibonacci with an extension price point 1,810.80, about +359 ticks above the market.

Entry: Counter trend line break-bullish in the buy zone.

Stop: 1,673.00

Limit: 1,810.80

As long as the market stays in the buy zone, it will be a good idea to turn to the five minute time frame and to look for Tunnel Trader, Destination Trader and/or Chandelier Trader long ideas towards 1,810.80.

The Bottom Line

For more on the markets as well as trading education and trading ideas like this one, look for the next edition of Josh’s Daily Direction in your email inbox each and every trading day.

I’ll be bringing you more of my stock and futures contract trading tutorials as well as some additional trading ideas. 

This includes alternative assets like digital currencies that could set up a side gig for traders, as I discuss below.

And if you know someone who’d love to make this a part of their daily trading routine, send them over to joshsdailydirection.com to get signed up!

Keep on trading,

P.S. I have been teaching more and more traders how to make their own trading accounts work so well that they can effectively become a side job with plenty of regular earning opportunities. To learn how to do this effectively using the strategies developed inside my War Room, click here!

The post Looking at Small Stocks for Big Trading Gains appeared first on Josh Daily Direction.

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