VXX Vix Futures ETN Daily Chart Potential Island Reversal H&S Gaps

VXX chart showing a nice bounce off the February falling wedge-overbot-positive divergence set up. The purple H&S was then in play with 27.5 head, 34.75 neckline and 41-ish target, which price did not quite reach. VXX came back down to fill the February gaps left behind, and then gapped down in mid April. This creates the island we now sit on, the green rectangle, thus, an island reversal pattern is in play that may catapult price up thru the gap in a heartbeat printing 27.5 and higher in quick order.

Today, price is filling that tiny gap left behind at 23.8-ish during the intial move off the bottom as May started. The chart is very constructive to the upside, there is no remaining baggage to take care of below, the island reversal is a help since that would catapult price, and also, a potential new larger H&S would be in play. The pink H&S has a 22.5 head, and left shoulder in February, so an anticipated right shoulder would be placed in May or June. The neckline is 37.5 which would target a huge spike in volatilty at some point which does not forbode well for equities. Simply looking at the constructive nature of this chart and how volatility now wants to meander along with an upward bias does not forbode well for the indexes either.

Additionally, the weekly chart is positively diverged and very agreeable to further upside in VXX.  This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here or any links connected to this information. Consult your financial advisor before making any investment decision.