Pro: Small-Cap Stocks Are On Fire, But Don't Hold For The Long Term
Small-cap stocks are off to their best start since 1987, with the iShares Russell 2000 Index IWM 1.04% up already 8 percent in 2019, said CNBC "Trading Nation" host Mike Santoli. Does this mean investors should be adding exposure to the small-cap group? These two pros debate.
Momentum Indicator for IWM turns negative, indicating new downward trend
IWM saw its Momentum Indicator move below the 0 level on December 09, 2024. This is an indication that the stock could be shifting in to a new downward move. Traders may want to consider selling the stock or exploring put options. Tickeron's A.I.dvisor looked at 91 similar instances where the indicator turned negative. In of the 91 cases, the stock moved further down in the following days. The odds of a decline are at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for IWM moved out of overbought territory on November 26, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 35 similar instances where the indicator moved out of overbought territory. In of the 35 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Moving Average Convergence Divergence Histogram (MACD) for IWM turned negative on December 05, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 45 similar instances when the indicator turned negative. In of the 45 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where IWM declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
IWM broke above its upper Bollinger Band on November 06, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Bullish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 1 day, which means it's wise to expect a price bounce in the near future.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where IWM advanced for three days, in of 327 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 260 cases where IWM Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
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Category SmallBlend