VIX Analysis May 2015 (D)

It is crunch time for the Volatility Index (VIX). While price has broken support given by the monthly PSAR indicator, I suspect it is a fake out move and price will shortly explode higher. Let’s quickly check out the daily chart.
 

VIX DAILY CHART 

The main support level stems from the double bottom at 11.52 which is denoted by the horizontal line. Price should not trade below there. Doing so will likely mean stock indexes are exploding to new all time highs. While possible, it is a scenario I just don’t favour.
 
The RSI is setting up bullish divergences and I favour one last low which sets up yet another.
 
Once the low is in place and provided it doesn’t break clearly below the double bottom level, I expect price to explode higher big time. 
 
 

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Disclaimer

All information contained in this website is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors. Put simply, it is JUST MY OPINION.

JoomShaper