As you most likely already know, the VIX variations are famous for heading downwards over time as the markets become more stable again. However, as you can easily note by observing the charts, there are times that there are breakthroughs, and they are usually extremely aggressive.
I have been watching TVIX very closely for the past few weeks and I believe it is preparing for another one of these breakthroughs.
1) Solid Support Curve Development - As you can see, a support curve has been developed which so far, appears to be holding out pretty toughly. I would not be surprised if this support is enough alone to pull the price through the resistance.
2) Breaking Through of Last Peak Resistance - This "shorter" term resistance dates back to February of this year. It is very evident that it has been responsible for several upward rejections over the past months, and has finally been broken. This suggests that the current support curve carries a pretty good amount of weight along with it which could easily be enough to break through the following resistance as well.
3) MACD Patterns - (Diagram: prntscr.com/kstych)
Looking at the MACD, we can depict 4 very distinct cycles between each spike.
The first section, is a very uneasy region after the price has dropped down again.
The second section displays some upwards momentum, but continues back downwards.
The third section flattens out and begins to slope upwards over time.
The fourth section, is where the price breaks through and shoots upwards.
I believe that we are currently in the midst of the third section, and can expect this spike within the following month if not earlier.
I have been watching TVIX very closely for the past few weeks and I believe it is preparing for another one of these breakthroughs.
1) Solid Support Curve Development - As you can see, a support curve has been developed which so far, appears to be holding out pretty toughly. I would not be surprised if this support is enough alone to pull the price through the resistance.
2) Breaking Through of Last Peak Resistance - This "shorter" term resistance dates back to February of this year. It is very evident that it has been responsible for several upward rejections over the past months, and has finally been broken. This suggests that the current support curve carries a pretty good amount of weight along with it which could easily be enough to break through the following resistance as well.
3) MACD Patterns - (Diagram: prntscr.com/kstych)
Looking at the MACD, we can depict 4 very distinct cycles between each spike.
The first section, is a very uneasy region after the price has dropped down again.
The second section displays some upwards momentum, but continues back downwards.
The third section flattens out and begins to slope upwards over time.
The fourth section, is where the price breaks through and shoots upwards.
I believe that we are currently in the midst of the third section, and can expect this spike within the following month if not earlier.
Comment:
prnt.sc//kstych#