The CBOE’ VOLATILITY INDEX’ (VIX’) has been doing good numbers increasing over 150% in the past two weeks.

The index is now retracing but additional bullish action is expected according to what I am seeing coming from the charts.

CBOE VOLATILITY 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:
  

  snapshot

• I believe we are seeing something similar now.
• Additional bullish signals: MACD shows bullish divergence . Bullish RSI and STOCH .
• 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 bullish 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

  Targets:

  (1) 24.50
  (2) 28.84
  (3) 33.63

  More targets on chart.

  Note: This is no trade advice.
  This information is shared for learning and entertainment purposes only.

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  Namaste.