Technicals on UVXY show high probability of upwards action
(Im also using this chart to show some key signals I look for when trying to find possible price reversals)
Using the daily chart
UVXY appears to indicate a high probability of upwards momentum in the short-medium term.
Today and maybe the following days could be a good time to buy calls at least 3 weeks out.
Using the MACD indicator and the RSI indicator I found the following signs to hint at incoming upwards price action.
1. MACD Slow (signal) and Fast line in uptrend with signal line outside of shaded area (fast line/histogram positive).
2. RSI is in an uptrend. If we assume the higher low will be followed by an upwards spike or at least another higher low.
- Additionally the %delta of the recent local bottoms of the RSI line is bigger than the %delta of the local bottoms from the price action, this shows aggressive buying from the bulls.
Aside from that there are a few present and upcoming macro factors that could indicate an upcoming increase in volatility.
A few to note:
- Nov contract expiration on friday
- Cryptocurrencies market under pressure
-
USOIL under pressure
- a few FOMC meetings next Wednesday Nov 24th
On the other hand, historically, the day before Thanksgiving (market closed) has proven to be a bullish day.
So if the gains are good the next following days you might want to take profit sooner than usual or buy further out expiration and wait for the first week of December that has also been historically weak.
Using the daily chart
UVXY appears to indicate a high probability of upwards momentum in the short-medium term. Today and maybe the following days could be a good time to buy calls at least 3 weeks out.
Using the MACD indicator and the RSI indicator I found the following signs to hint at incoming upwards price action.
1. MACD Slow (signal) and Fast line in uptrend with signal line outside of shaded area (fast line/histogram positive).
2. RSI is in an uptrend. If we assume the higher low will be followed by an upwards spike or at least another higher low.
- Additionally the %delta of the recent local bottoms of the RSI line is bigger than the %delta of the local bottoms from the price action, this shows aggressive buying from the bulls.
Aside from that there are a few present and upcoming macro factors that could indicate an upcoming increase in volatility.
A few to note:
- Nov contract expiration on friday
- Cryptocurrencies market under pressure
-
USOIL under pressure- a few FOMC meetings next Wednesday Nov 24th
On the other hand, historically, the day before Thanksgiving (market closed) has proven to be a bullish day.
So if the gains are good the next following days you might want to take profit sooner than usual or buy further out expiration and wait for the first week of December that has also been historically weak.
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