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VIX (VX) Consolidating Near Weekly Chart Downchannel Resistance

VIX (VX) Consolidating Near Weekly Chart Downchannel Resistance

Posted February 28, 2023
Darren Chu
Tradable Patterns

VIX (VX) Consolidating Near Weekly Chart Downchannel Resistance

The VIX (VX) slid almost 4% yesterday after bumping against downchannel/ descending wedge resistance (on the weekly chart), but remains poised for another test this week of this key bull/bear battleground.  Any reclaiming of last week’s high will dramatically increase odds of testing the psychologically key 25 whole figure level and January high in the week after.  Volatility will surge as early as today 10am EST following the US CB Consumer Confidence, Wednesday US ISM manufacturing PMI, and Friday US ISM services PMI.  The escalation in the Ukraine-Russia conflict deserves close monitoring.  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, or more recently from the Nov 30, 2021 alert of the growing probability of a rebound in the VIX and repeated Jan 18, 2022.  The weekly and daily RSI, Stochastics and MACD are bottomish.  I am looking 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 for analysis on S&P500, GBPAUD

Source: Interactive Brokers TWS

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