The index is now retracing but additional action is expected according to what I am seeing coming from the charts.
CBOE INDEX’ (VIX’) Analysis by Alan Masters
- Before increasing by 150%+, the VIX’ touched a low point, which is the same as back in December 2006 (8.60); marked with a yellow square and brown line on the chart.
- After touching bottom back in 2006, the VIX’ went up 1000% (from Dec. 06 to Oct. 08). Here is the chart:
- I believe we are seeing something similar now.
- Additional signals: shows . and .
- New uptrend formed after bottomed was hit.
- Strong break above EMA10, 50, 100 and 200. Note: Monthly candle is yet to close. This signal will only be confirmed once the monthly candle closes. A close above 18.70 on the monthly candle gives out a strong signal; above 21.09 the signal becomes very strong.
Current support: 18.70
Next support: 16.31
Current resistance: 19.70
Next resistance: 21.09
More targets on chart.
Note: This is no trade advice.
This information is shared for learning and entertainment purposes only.
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(1) 24.50 - Target hit
(2) 28.84 - Target hit @ 27.86
(3) 33.63 - Next target.