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VIX (VX) Reclaims Key 20 Level Ahead of FOMC

VIX (VX) Reclaims Key 20 Level Ahead of FOMC

Posted January 31, 2023
Darren Chu
Tradable Patterns

VIX (VX) Reclaims Key 20 Level Ahead of FOMC

The VIX (VX) is trying to halt the slide from October by rebounding off last week’s fresh 2023 low.  Before bulls get excited, the VX will need a daily close above downchannel resistance (on the daily chart).  With the VX back above the psychologically key 20 whole figure level, odds are fairly low for a further slide to downchannel support (on the daily chart) in the day following the highly anticipated FOMC and Fed rate announcement Wednesday.  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.  Except for the still downsloping weekly MACD, the weekly, daily and 4hr RSI, Stochastics and MACD are bottomish, rallying or consolidating recent gains.  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 NASDAQ100, GBPAUD

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Source: Interactive Brokers TWS

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