The strength in IWC and IWM have both of them testing all-time highs this week, which could be the top of bullish ascending triangles at each (1).
Two-thirds of the time the ascending triangle pattern leads to higher prices.
If they break above line (1), the measured move suggests that each could rally around 10%. The measured move target for IWC comes into play around the $112 level and for IWM the target comes into play around $178.
For Micro and Small caps to keep acting stronger than large caps, each needs to break above resistance at (1).
The iShares Russell 2000 Index ETF (IWM) fell $0.05 (-0.03%) in premarket trading Tuesday. Year-to-date, IWM has gained 4.44%, versus a 2.29% rise in the benchmark S&P 500 index during the same period.
This article is brought to you courtesy of Kimble Charting Solutions.