For almost a year, shares of the iShares Russell 2000 ETF (IWM) have been in a narrow trading range, but that may have changed. IWM has broken out of the range and may be poised to trade higher.
The bottom of the range was around $211. Each time IWM trended lower to this level, the buyers overpowered the sellers. This put an end to the sell-off and a rebound followed.
The top of the range was around the $234 level. Each time IWM got close to it, the sellers overpowered the buyers and knocked it lower.
Now IWM appears to have broken out. The sellers who formed the resistance are gone. They have either finished or canceled their orders.
With this supply out of the market, the stage is set for the buyers to push the price higher. A new uptrend may be forming.
