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VIX (VX) Testing Weekly Chart Descending Wedge Resistance

VIX (VX) Testing Weekly Chart Descending Wedge Resistance

Posted December 13, 2022
Darren Chu
Tradable Patterns

The VIX (VX) is trying to form a major bottom by bouncing off near the 2022 low.  With the VX consolidating just above downchannel resistance (on the daily chart), odds are rising for a weekly close above descending wedge/downchannel resistance (on the weekly chart).  There is now a moderate probability of a test of the psychologically key 25 whole figure level before the Xmas lull sets in.  Bullish catalysts may arrive today 830am EST with the US’ CPI data and Wednesday following the highly anticipated US’ FOMC, Fed rate announcement and FOMC conference.  The slew of economic news continues Thursday with the US’ retail sales and Empire State manufacturing index, and Friday with the US’ Flash 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.  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 Thursday.  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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