iShares Russell 1000 Value Index Fund ETF (IWD)
IWD has setup in an Ascending Triangle formation in an uptrend indicating a likely breakout to the upside. The breakout resistance level is $58.06, the top of the ascending triangle.
IWD ETF Breakout Setup
There are several potential targets based on the following:
Head & Shoulder Reversal measuring objective:
The difference between the neckline and the low equals $17.03 ($50.55 – $33.52).
Adding this difference to the breakout of the neckline of $49.30 gives us a target of $66.33.
Ascending Triangle measuring objective:
The difference between the top of the triangle of $58.06 and the low of $53.25 equals $4.81. That difference added to the high breakout price gives us a target of $62.87.
Previous resistance on the long term chart was back in May 2001 and March 2004 at $61.62 to $61.76. This is also very close to the $61.69 area which is the 50% Fibonacci retracement of the large downtrend.
Finally, the 200 period exponential moving average is currently at $62.27 on the weekly chart.
This analysis provides reasonable confidence that IWD has a good chance of hitting the minimum target of $61.62, followed by $62.87, then $66.87 once it breaks out of the Ascending Triangle.
