UVXY, the volatility index about to explode?
Updated
Technical Analysis:
In the month of Sept'24 UVXY changed about $10.58 which was a huge change from Aug'24. It continued the trend in Oct, so far the UVXY changed about $5.8 in this month. In other words UVXY is forming a triangle, or a squeeze. If the trend continues, the next month's trading range will be very narrow, about 2.x change!!!
The RSI MA Cros and EMA Cross are indicating possibility of uptrend.
Fundamental Analysis:
Considering US Election early next month and the possibility of close win or lose of both parties, there might be increase in the volatility. Not mentioning the two ongoing active wars and the possibility of further escalation that can add to the uncertainty. Due to this reasons US Dollar Index has gone up from 101.x to 104.x which is huge.
There is a possibility of UVXY breaking up from the triangle to $30 and up in the first half of the next month.
In the month of Sept'24 UVXY changed about $10.58 which was a huge change from Aug'24. It continued the trend in Oct, so far the UVXY changed about $5.8 in this month. In other words UVXY is forming a triangle, or a squeeze. If the trend continues, the next month's trading range will be very narrow, about 2.x change!!!
The RSI MA Cros and EMA Cross are indicating possibility of uptrend.
Fundamental Analysis:
Considering US Election early next month and the possibility of close win or lose of both parties, there might be increase in the volatility. Not mentioning the two ongoing active wars and the possibility of further escalation that can add to the uncertainty. Due to this reasons US Dollar Index has gone up from 101.x to 104.x which is huge.
There is a possibility of UVXY breaking up from the triangle to $30 and up in the first half of the next month.
Trade active
This was a considerable drop; it seems UVXY had the US Election as a significant contributor. The price has touched monthly S2. Please also note that the current price level of $22 is a support from Aug'24. Expect a bounce back if the price action respects the monthly S2 and previous support. Or it might just continue to go down further.Trade closed manually
Looks like VIX has cooled down after the US election results. 
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