VIX (VX) Weekly MACD Trying to Positively Cross
The VIX (VX) is gaining momentum in its bounce off the November and 2021 low. Significantly, the VX is rebounding from downchannel support (on the weekly chart), with the current weekly candle breaking above a downtrend resistance line (on the weekly chart) that began in September. Odds are fairly high for a test of the 38.2% Fib retrace of the slide from the September peak to the November low by month end. Volatility can be expected to surge following Wednesday’s US GDP and Core PCE Price Index data, and the FOMC Meeting Minutes. Congratulations to premium subscribers who benefited from the March 17, 2020 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. The weekly, daily and 4hr RSI, Stochastics and MACD are bottomish, rallying or consolidating recent gains. I am looking at entering 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).
Sample of Today’s Top 3 Trades Available to Free Subscribers (published Apr 14, 2021)
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