It’s business as usual for the VIX

VIX_business_as_usualFor the VIX it has been business as usual with the reverberations of late summer calming as the index continues to edge ever lower and down towards single figures, where complacency dominates and where the warning flags will really start to fly. For November, the index found support in the 14 area on the daily chart, before rallying strongly as stock markets reversed off their technical levels and driven this way and that by the indecision and uncertainty of the FED. The index then peaked in the 21 area with a test of the resistance in this region before reversing lower on a bearish engulfing candle last week, before breaking through and then holding below the strong platform of support in the 16.70 price region, which has now duly become resistance. Indeed this level was tested in yesterday’s trading session, before the index closed lower at 15.62.

The question now is whether the index can break through the 14 price point where a strong platform is now being created following the testing and retesting of this region in late October, and for much of November. Any break through here then opens the way to the even more developed support level at 12, but which to date, has proved to be a bridge too far for the VIX.

By Anna Coulling

Charts from NinjaTrader and trading indicators from Quantum Trading

About Anna 1054 Articles
Hi – my name is Anna Coulling and I am a full time currency, commodities and equities trader. I have been involved in both trading and investing for over fifteen years and have traded many different financial instruments, from options and futures to stocks and commodities. I write and publish articles ( mostly for free ) for UK and international publications on a wide variety of financial issues, and in particular I enjoy helping others learn how to invest and trade.

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