Thirteen was a key resistance level on the Volatility Index (VIX) chart in 2017, and the times when it was broken, the sixteen level contained any further advance.
The 13 level has proven to be an important key technical level again in 2018. The spike in volatility in February this year was followed by a sharp pullback. Ultimately, the index settled and began moving in a large range. Resistance was situated in the 25 to 26 area, and the prior resistance at the 13 level became support.
This month the “Fear Index” moved back down below its 200 day moving average to the lower end of the 2018 large range, that well-tested 13 level. In trading on Tuesday a bullish candle formed there, closing near its high and back above the 200 day average.
If the Volatility Index can get back above the 16 level, it would suggest that the 13 level was once again, successfully retested. And continued upside momentum could end up taking it back to the upper end of the large 2018 range, in the 25 area.