Russell 2000 Index Futures Analysis for Today

TradeCompass: Russell 2000 Index Futures Analysis – 16 January 2025

Financial Instrument: Russell 2000 Index Futures (RUT Futures)

Price at the Time of Analysis: 2279.3

Key Levels and Trade Scenarios for Russell 2000 Futures Today

Bullish Above: 2291.3

• Why Bullish Above:If Russell 2000 Futures rise above 2291.3, the price will surpass yesterday’s Value Area High (VAH) at 2288.5 and move above the first upper standard deviation of yesterday’s VWAP. This confirms bullish momentum and opens opportunities for long trades.

• Bullish Profit Targets for Russell 2000 Futures Today:

1. 2298.25 – Quick partial profit-taking below the psychologically significant 2300 round number.
2. 2310.3 – A final extended target for bullish positions.

Bearish Below: 2271.2

• Why Bearish Below:A move below 2271.2 places the price under yesterday’s Value Area Low (VAL), signaling increased selling pressure and confirming a bearish bias.

• Bearish Profit Targets for Russell 2000 Futures Today:

1. 2263.8 – Quick partial profit-taking near the first lower standard deviation of yesterday’s VWAP.
2. 2254.7 – Just above the VAH and VWAP of January 14, offering further downside potential.
3. 2241.8 – A final target just above the start of yesterday’s CPI-driven rally.

Educational Insights for Russell 2000 Futures Traders

VWAP in Russell 2000 Futures Analysis

The Volume-Weighted Average Price (VWAP) is a critical indicator for tracking institutional activity and key price levels in RUT Futures trading.

• How VWAP Helps Today:
  • Price above VWAP and its upper deviations often signals bullish sentiment.
  • Price below VWAP and its lower deviations reflects bearish pressure.
  • Use VWAP in conjunction with Value Area levels to refine trade entries and exits.

Value Area in Russell 2000 Futures Today

• Importance of the Value Area:The Value Area highlights where 70% of trading volume occurs, providing essential levels for traders.
  • Bullish Strategy: Look for long entries near the VAL, targeting the VAH or higher levels.
  • Bearish Strategy: Enter shorts near the VAH, aiming for the VAL or lower deviations.
  • Combine Value Area analysis with VWAP and Delta to strengthen trading strategies in Russell 2000 Futures today.

Disclaimer

This Russell 2000 Futures analysis is for educational purposes only and does not constitute financial advice. Trading in RUT Futures involves risks and may not suit all investors. Always trade responsibly and manage your risk carefully.

Visit ForexLive.com for more insights and updates on Russell 2000 Futures analysis.

This Russell 2000 Futures analysis serves as a “compass” for navigating today’s market. Use the outlined bullish and bearish thresholds to anticipate price movements and integrate partial profit-taking strategies to balance risk and reward effectively.

This article was written by Itai Levitan at www.forexlive.com.