IWM still in an uptrend but momentum is slowing
IWM is still in an uptrend. Its producing higher lows and higher highs so there is no reason to sell yet.
I did notice that momentum is slowing down. There are two indications on this chart.
1) The break of the initial trend line (green dotted)
2) The appearance of a new trend line (green) with decreased slope
3) The appearance of divergence between the higher highs of price vs. the lower highs of the price percentage oscillator, which is simply the spread between the 8 and the 20 day moving average.
These are just warning signs that the uptrend is weakening, but they are not reasons to close out your position.
I will close my position if the following occurs:
Price breaks below the recent higher low
I did notice that momentum is slowing down. There are two indications on this chart.
1) The break of the initial trend line (green dotted)
2) The appearance of a new trend line (green) with decreased slope
3) The appearance of divergence between the higher highs of price vs. the lower highs of the price percentage oscillator, which is simply the spread between the 8 and the 20 day moving average.
These are just warning signs that the uptrend is weakening, but they are not reasons to close out your position.
I will close my position if the following occurs:
Price breaks below the recent higher low