RUT: Downside Fib Targets

With the RUT breaking the rising wedge, it seems appropriate now to take a look at some downside targets should this pattern get some follow through.

The key level for the RUT to hold is 460. If 460 is breached it will be a 100% retracement of the 5 day (low volume) rally that started on December 30th. A close below 460 on the daily charts would create a lower low and put into to question this little (bear flag) uptrend.

The fib targets to the downside are 161.8% at 425 and 261.8% at 368.

There are 2 conflicting patterns now that both confirmed, one to the upside and one to the downside. The upside pattern was the reverse head and shoulders and the downside pattern was the rising wedge. If the RUT stays above 460 then the downside numbers were just a fun exercise and the upside targets would be 490, 500, 520, 550 and 580. The reverse head and shoulders target to the upside is 580. This would be a strong area of resistance (brick-wall like) and a likely area to produce a strong bounce downward.

RUT Downside Targets on Daily Chart: