VIX (VX) Trying to Form 1st Green Weekly Candle in 6 Weeks
The VIX (VX) is trying to form its 4th straight green daily candle and its first green weekly candle in 6 weeks. Significantly, the VX has rebounded after slipping last week to a fresh 2021 low, with the VX back above downchannel support (on the weekly chart) after briefly sliding beneath it last week. Any daily close above downtrend resistance (on the daily chart) would dramatically increase the likelihood of reclaiming the October high in the week after. Volatility can be expected to surge today following the US PPI data at 930am EST, US Fed Chair Powell’s comments at 10am EST and US CPI data tomorrow. The weekly, daily and 4hr RSI, Stochastics and MACD are mostly bottomish or rallying. 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).