IWM Breaking Down! Key Levels $ Setup for the Week of Dec. 16.

1. Technical Analysis (Daily & 1-Hour Timeframes)

Daily Chart (Longer Timeframe):
* Trend: IWM (Russell 2000 ETF) is breaking down from its rising channel, signaling weakness.
* Resistance:
* 240: Previous support turned resistance.
* 244.98: The upper supply zone where sellers may step in.
* Support:
* 233: Immediate key support where buyers may attempt to hold.
* 214: Stronger support from prior price action.
* Indicators:
* MACD: Bearish crossover confirms downward momentum.
* Volume: Elevated selling pressure in the last few sessions.

1-Hour Chart (Shorter Timeframe):



* Trend: Price is in a short-term descending channel, testing support near 233–232.
* Resistance:
* 235.95: Closest resistance on the 1-hour chart.
* Support:
* 231.88: The next key level of support aligned with recent lows.
* MACD: Slight signs of recovery but remains bearish overall.
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2. GEX Analysis



Key GEX Levels:
* CALL Walls (Resistance):
* 235: 2nd CALL Wall, presenting overhead resistance.
* 237: Highest resistance level from GEX and likely area of rejection.
* PUT Walls (Support):
* 233: Current area showing significant PUT support, aligning with technical levels.
* 231: Highest negative GEX level, acting as a major support zone.

Options Oscillator Insights:
* IVR: 19.1% – Elevated volatility, making options slightly more expensive.
* PUTs: 86.08% activity signals strong bearish sentiment in options flow.
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3. Trade Setups
Bearish (Short Bias):
* Entry: Near rejection at 235–237 resistance.
* Target:
* 233 PUT support as the first target.
* 231 negative GEX as the extended target.

* Option Strategy:
* Buy PUT options (strike 233, expiry 1 week out).
* Consider a Bear Put Spread: Buy 234 PUT, Sell 231 PUT to lower cost.

Bullish (Rebound Play):
* Entry: If IWM holds above 233 PUT support with bullish volume confirmation.
* Target:
* 235: Closest resistance target.
* 237 CALL Wall as an extended target.

* Option Strategy:
* Buy CALL options (strike 233, short-term expiry).
* Use a Bull Call Spread: Buy 232 CALL, Sell 235 CALL to minimize risk.

Directional Bias for This Week
* Bearish unless IWM can reclaim 235 resistance. The current price action and heavy PUT positioning signal downside risk toward 231 PUT Wall support.
* Watch for potential bounce opportunities at 233, but the trend favors further weakness.

Short Disclaimer:
This analysis is for educational purposes only and does not constitute financial advice. Always do your own research and manage your risk before trading.