VIX: Bullish Watch List

By: TheWaveTrading | Tue, May 20, 2014
Print Email

Reason: Potential bullish Falling Wedge

We could make the case that the sideways action since the February low has formed a bullish Falling Wedge, if this is the case as VIX is getting close to the apex of the assumed wedge a breakout is imminent.

The Bollinger Band, which is now tight is also suggesting that a "large" move could be in the cards.

If ths wedge pans out I expect a sharp move with a potential target at least at the gap fill = 15.61.

If the trend line resistance in force since the February high is breached then it would open the door to a raise towards the 20 area.

I am waiting for a bullish candlestick in order to consider viable a tradable bottom since VIX could still print a lower low (within the converging trend line).

I am thinking of buying Calls maturity July with a strike 14.

VIX Daily Wedge Chart
Larger Image




Author: TheWaveTrading


Contact: If you would like to contact the author, you can e-mail him at

The main objective of this project is to share my views on several markets and asset classes.

In the initial stage TWT website will be a free service.

My main focus will be the equity market with SPX being the leader but I will also follow US equity sectors, major European indices, fixed income, currencies and commodities markets.

My analysis is based upon traditional Technical Analysis, Elliot Wave guidelines and investor sentiment.

My goal is to establish the most likely path that the price of a particular asset will undertake and profit through ETF instruments both on the long and short side and mainly with leveraged ones (2 x & 3 x).

The advantage of ETF investments is that it allows getting involved in equity indices & sectors, currencies, fixed income, commodities etc.

Therefore the main purpose of TWT will be to establish investment strategies regardless if the market is in an up trend or in a down trend, leveraging the chosen scenario while managing the risk by establishing protective stop losses.

Hence I will always define the risk, I will try to let winners run the wave and I will cut the losses if my strategy is wrong.

Disclaimer: The content of this article is for educational purposes only, the information supplied is not a recommendation to buy or sell any security or financial instrument. nor the owner can not be held responsible for any loses occurred from the information provided within the website.

The Information supplied cannot be copied or reproduced without the permission from the owner.

Copyright 2011-2016 TheWaveTrading

All Images, XHTML Renderings, and Source Code Copyright ©