VXXB finds buyers around 26.65 for the forth day in a row
iPath S&P 500 VIX ST Futures ETN (VXX) Technical Analysis Report for May 08, 2019 | by Techniquant Editorial Team
VXXB ended Wednesday at 26.65 flat.
Daily Candlestick Chart (VXX as at May 08, 2019):
Wednesday's trading range has been $0.00 (0.0%), that's far below the last trading month's daily average range of $0.63. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently just the same than usual for VXXB.
Regardless of a strong opening the ETF closed below the previous day's open and close, forming a bearish Engulfing Candle. Additionally, two candlestick patterns are matching today's price action, the Tweezer Top which is known as bullish pattern and one bearish pattern, the Last Engulfing Top Pattern.
The market was bought again around 26.65 after having seen lows at 26.65, 26.65 and 26.65 in the last three trading sessions. Obviously there is something going on at that level.
Although iPath Series is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Buying could speed up should prices move above the close-by swing high at 26.67 where further buy stops might get activated.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to prior low" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for iPath Series. Out of 47 times, VXXB closed lower 59.57% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after six trading days, showing a win rate of 51.06% with an average market move of -0.46%.