When the Price of Vix Short-term Futures Etn VXX Talks, People Listen

September 10, 2022, 18:45 pm ET, BY Joseph H.- Contributor| Editor: Thomas H. Kee Jr. (Follow on LinkedIn)

This is not EF Hutton, but it could be more #powerful.  A picture speaks a thousand words, they say, and the #priceaction of Vix Short-term Futures Etn (NYSE: VXX) tells an important story.  The movement tells us where investors perceive value, or the lack of it, and if we pay attention we can capture opportunity.  The data below for VXX can be used as an example, and demonstrate how to do this for other stocks too.  This data was current at the time of publication, but it is not updated in real time here. If you want real time updates, or data on a different stock, please get one here Unlimited Real Time Reports. 

Longer Term Trading Plans for VXX

• NONE. Details

There is no current Support Plan to trigger a buy of this stock at this time. This usually means that there are no clear support levels at this time, so buying the stock as it falls could be considered catching a falling knife. Buy signals only exist if resistance breaks higher.
This often is a signal that the stock you are watching is weak. Waiting for a turn higher may be more intelligent than trying to catch a falling knife. In any case, new support levels are usually revised to the database at the beginning of the next trading session.

• Short VXX under 19.80, target n/a, stop loss @ 19.86 Details

The technical summary data is suggesting a short of VXX as it gets near 19.80, but the downside target is not available from the current data. This tells us to hold that position if it is triggered until a new downside target has been established (updates occur at the beginning of every trading session) or until the position has been stopped. The summary data tells us to have a stop loss in place at 19.86. 19.80 is the first level of resistance above 18.47, and by rule, any test of resistance is a short signal. In this case, if resistance 19.80 is being tested, so a short signal would exist.

Swing Trading Plans for VXX

• Buy VXX slightly over 19.09, target 19.80, Stop Loss @ 19.03 Details

If 19.09 begins to break higher, the technical summary data tells us to buy VXX just slightly over 19.09, with an upside target of 19.80. The data also tells us to set a stop loss @ 19.03 in case the stock turns against the trade. 19.09 is the first level of resistance above 18.47, and by rule, any break above resistance is a buy signal. In this case, 19.09, initial resistance, would be breaking higher, so a buy signal would exist. Because this plan is based on a break of resistance, it is referred to as a Long Resistance Plan.

• Short VXX near 19.09, target 18.20, Stop Loss @ 19.15. Details

The technical summary data is suggesting a short of VXX if it tests 19.09 with a downside target of 18.20. We should have a stop loss in place at 19.15 though in case the stock begins to move against the trade. By rule, any test of resistance is a short signal. In this case, if resistance, 19.09, is being tested a short signal would exist. Because this plan is a short plan based on a test of resistance it is referred to as a Short Resistance Plan.

Day Trading Plans for VXX

• Buy VXX slightly over 18.77, target 19.09, Stop Loss @ 18.73 Details

If 18.77 begins to break higher, the technical summary data tells us to buy VXX just slightly over 18.77, with an upside target of 19.09. The data also tells us to set a stop loss @ 18.73 in case the stock turns against the trade. 18.77 is the first level of resistance above 18.47, and by rule, any break above resistance is a buy signal. In this case, 18.77, initial resistance, would be breaking higher, so a buy signal would exist. Because this plan is based on a break of resistance, it is referred to as a Long Resistance Plan.

• Short VXX near 18.77, target 18.20, Stop Loss @ 18.81. Details

The technical summary data is suggesting a short of VXX if it tests 18.77 with a downside target of 18.20. We should have a stop loss in place at 18.81 though in case the stock begins to move against the trade. By rule, any test of resistance is a short signal. In this case, if resistance, 18.77, is being tested a short signal would exist. Because this plan is a short plan based on a test of resistance it is referred to as a Short Resistance Plan.

VXX Ratings for September 10:

Term →	Near	Mid	Long
Rating	Weak	Weak	Neutral
P1	0	0	19.80
P2	18.16	18.20	23.22
P3	18.77	19.09	28.11

Support and Resistance Plot Chart for VXX

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