Why the iShares Russell 2000 ETF’s “Blue Box” Dip Could Be the Ultimate Game-Changer for Your Portfolio Right Now

Ever wonder what it feels like to catch the perfect wave—and ride it all the way to shore? Well, in the trading world, the Elliott Wave theory might just be the surfboard you didn’t know you needed. Lately, our members have been swimming in profitable setups, but this latest one on the iShares Russell 2000 ETF – IWM – is something special. The ETF nailed its correction right at the Equal Legs zone, what us geeks call the Blue Box Area. It’s like clockwork, and honestly, there’s a certain thrill watching these patterns unfold exactly as the theory predicts. In this article, I’m going to walk you through the Elliott Wave forecast, unpack the nuts and bolts of the trade setup, and share the upside targets that could have you grinning all the way to your portfolio. Ready to dive in? LEARN MORE

As our members know we have had many profitable trading setups recently.   In this technical article, we are going to talk about another Elliott Wave trading setup we got in iShares Russell 2000 ETF -IWM . The ETF has completed its correction exactly at the Equal Legs zone, also known as the Blue Box Area. In this article, we’ll break down the Elliott Wave forecast, explain the trading setup in detail, and provide the upside target.

IWM Elliott Wave one-hour chart 8.20.2025

IWM is forming a three-wave pullback against the 212.33 low. The price has already reached the Blue Box (buying zone). We have entered long trades at the equal legs level of 224.52. We expect at least a three-wave bounce from the Blue Box area. Once the price reaches the 50% Fibonacci retracement of the red B connector, we will make the position risk-free by moving the stop loss to breakeven and booking partial profits.

IWM Elliott Wave one-hour chart 8.20.2025

The ETF found buyers as expected, rallying toward new highs. Consequently, any long positions from the Blue Box should now be risk-free. We’ve set our stop loss at breakeven and have already secured partial profits. As long as the price holds the pivot at the 223.64 low, we can expect at least another leg up as indicated on the chart.

Short term: While above the 230.84 low (wave 4 red), IWM is ideally targeting the 239.41–242.03 area next.