The UVXY price extension tool had projected price to rise right to current price level @ 20, where it has met Fibonacci resistance. It is worth careful monitoring because the three most likely resolutions are, (1) a temporary slowing down of the leg up, maybe for as long as a few days; (2) a longer-term top that won't be exceeded for weeks, or, the biggie; (3) a sprint to the next higher Fib level @ 30, and above that, 40 (not shown). No doubt, which of these three outcomes will be determined by the war in Ukraine, and maybe more dire, whether if it stays in Ukraine. The bet here is that the news will get worse before it gets better, opening the path for a run to UVXY 30, then 40. UVXY 30 Minute As for VXX the analysis is the same, only the price levels differ. A run above 28 gives rise to a target of 42. VXX 60 Minute There is no compelling need to own calls in either UVXY or VXX as long as holding puts in either IWM, QQQ, or SPY. If volatility spikes as projected on these charts, the indexes will get clobbered and those index puts will soar.
