US SMALL CAP 2000 Analysis: Bull Trend Intact, but Caution Warranted

In this comprehensive analysis, Ultima Markets brings you an insightful breakdown of the US2000 for July 18, 2025.

Technical Analysis of US SMALL CAP 2000US2000 Daily Chart Insights

• Bullish alignment: The price is now trading firmly above all three moving averages.

• Key support area: The upside direction offers the path of least resistance. A decisive break above the 2280 resistance level with sufficient momentum would confirm the up trends continuation. This would set up a potential challenge of the major resistance zone spanning 2320 to 2400. Any pullbacks toward moving average support levels, especially the 2150 confluence area, should present attractive buying opportunities provided the bullish structure stays intact.

US2000 2-hour Chart Analysis

• Stochastic oscillator: The indicator is in a deeply overbought condition (>90), which suggests the recent rally might be overextended and vulnerable to a pullback or consolidation.

• Breakout scenarios: With robust upward momentum building from the recent low, the trajectory of least resistance points higher. A definitive close above 2260 resistance would demonstrate the market‘s determination to test the significant high at 2270-2274. Breaking through this critical level would validate the up trend’s persistence and unlock potential for additional advances. Should the price be unable to penetrate the 2260 resistance level, a retreat would be probable.

US2000 Pivot Indicator

• The index surged past all three moving averages on July 17th, which are now in bullish alignment. However, the steep rally has pushed the Stochastic oscillator into deeply overbought territory. While momentum remains positive, the market appears overextended and may be due for consolidation or a pullback.

• Bullish Continuation: The index could either maintain its gradual advance or undergo a short consolidation phase before surpassing the 2260 resistance. A persistent move beyond this threshold would confirm the robust up trend‘s continuation. Market participants may interpret any retreats to the dynamic support at the purple MA (~2250) as attractive entry points.

• Bearish Pullback / Consolidation: The overbought Stochastic indicates that bullish momentum could begin to fade. If the price struggles to advance beyond 2260, a corrective retreat would be expected.

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