Facts:
- US2000 has lost more than 9% from its local peaks
- However, the index maintains a long-term upward trend
- The continuation of the cycle of interest rate cuts in the U.S. later in the year will support smaller capitalization companies that depend on external capital
Recommendation:
- Transaction: Long position on US2000 with activation limit
Activation limit: 2200
Stop Loss: 2150
Target1: 2319
Target2: 2467
Opinion: the US2000 has lost more than 9% since its peaks. However, the index maintains its long-term upward trend. The continuation of the cycle of interest rate cuts in the US later in the year will support smaller-cap companies that are dependent on external capital, so despite short-term difficulties, the index seems likely to resume its upward trend in the medium term. In view of this information, we recommend a long position approach on the index with a trigger limit, a stop loss order and two target points. The limit price was set just below the 200-day EMA, which supported the index’s 2024 quote. Target positions were set at the maxima of local consolidation/peaks. Investors are advised to exercise extreme caution in view of the high volatility that characterizes this instrument.
Source: xStation
