VIX (VX) Weekly Chart Bullish Island Reversal Near Complete

VIX (VX) Weekly/Daily/4hr

The VIX (VIG23) is consolidating yesterday’s break above downchannel resistance (on the 4hr and daily chart), and appears poised to complete a Bullish Island Reversal (on the weekly chart).  With the bounce off downchannel support (on the weekly chart) gaining momentum, a weekly close above the psychologically key 20 whole figure level is all but assured.  The VX no longer appears vulnerable in February to a retest of last week’s fresh 2023 low, with odds now elevated for a retesting of the January high before month end.  Volatility will surge today 10am EST following the US Preliminary UoM consumer sentiment data. 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 Wednesday.  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

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On the date of publication, Darren Chu did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.