ProShares Trust Ultra VIX Short Term Futures ETFArca
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If my math is correct, a red line cross should be highly reactive and with UVXY being this cheap relative to VIX (not to mention relative to 0 as well), we have a solid setup.
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Bigger picture...
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Right now Price Action is holding to our red line and sitting right on top of our Bottom Upchannel, that is a valid reactivity for this point. Even dropping back under is valid for another cross setup.
Price Action should now be accumulating Upside Potential from the red line cross to express when the time is right and this expression will be fully realized when Price crosses the white line above...
I'm expecting a green line cross before a magenta cross.
Crossing under magenta seems particularly difficult here given the massive short interest to the point that platforms had to block their users from shorting UVXY a month ago lol. Likewise this makes a short covering rally more likely.
Not really sure where it goes after this spike though, maybe it climbs back to another peak, maybe we swoop down to $6 (white line) but with the bottom of this Decay Channel now at $0, we are much more likely to see sideways or slow decay and upside then any major downside event.
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I think dems sweeping the senate and Congress officially counting EC votes tomorrow to declare Biden the winner (yet again) with Trump going apesht as usual is likely to cause some volatility.
I felt like Trump was just doing self PR since his election defeat to carry into his role as King Republican but the way it has played out till today I am convinced he is legitimately using his full authority as President to try to actually subvert Democracy and maintain power and it's only making him look weak and pathetic now.
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Low upchannel still holding pretty well.
This sideways movement starting to get scary as we drift higher in the decay channel... getting increasingly likely we see a spike or a collapse and much less likely we continue sideways.
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Price tagged resistance at the dotted line and bottom of downswoop ready to test again for possible breakthrough...
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RSI also walking up our minor uptrend support and wedging hard into Feb. Great tag on our orange downtrend there to confirm it's power and should be more powerful so it could push RSI back down but if RSI breaks through it will likely launch it...
Buckle up brother , this is going to be one heck of a ride . although it may not seem like much to us little fish but someone pluncked down 5 Million on 280 nasbag puts for jan. experation and 13 mil. at 263 .
@ProfitHarvest what's your TP1, around 13.90? Or do you think the red line cross reactivity will really shoot us fast, where you won't scale out 'til 14+? It'll be good to see a close above red.
ProfitHarvest
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@farmerisland, I think we'll hold/retrace along red for a bigger breakout later, doesn't seem to be the moment but yea 15/GREEN line for starters, we'll see from there. Maybe $20 max potential here.
farmerisland
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@ProfitHarvest, I was thinking so too, but atm we're gaining strength... Now this chart is the 2h, but wouldn't a solid daily close above the red point as a breakout? Or am I reading your TA wrong?
ProfitHarvest
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@farmerisland, The reactivity can be sticking to the trend to later launch off of it or yea it could launch now too. Trend fractals are more spatially precise, not precise on timing.
ProfitHarvest
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@farmerisland, Also notice how we got stuck at the white trend fractal after crossing red, this is the last flood gate that once broken should take us to the green line at a minimum. Still has a lot of reserve power from the red line cross just waiting for expression.