VIX (VX) Tries Bouncing Off Weekly Chart Downtrend Support
The VIX (VX) is trying to halt its massive slide since February at the psychologically key 20 whole figure level. Significantly, the VX is trying to bounce off the downtrend support (on the weekly chart), with elevated odds for a retest of the high 2 weeks ago on the weekly chart descending wedge resistance break for the day or so following Friday’s highly anticipated US Non-Farm Payrolls (NFP). Nevertheless, VX bulls should be prepared for a lower probability final test of descending wedge support (on the daily chart) post-NFP before reversing to the upside early next week. Congratulations to premium subscribers who benefited from the March 17th warning of the pending slide in the VX, one day before its record high on the front month contract and from the Jan 26th alert of the growing probability of a rebound in the VIX. Except for the weekly MACD which still slopes down, the weekly and daily RSI, Stochastics and MACD are bottomish. I am long as of yesterday at 20.2, although if I were flat, I’d look to enter long in the green zone (of the daily chart), targeting the red zone for Monday. The amber/yellow zone is where I might place a stop if I was a swing trader (although in my personal account with which I seldom hold overnight I sometimes set my stops tighter)…Click here to read today’s technical analysis of Nasdaq100, Silver
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