Chart the Market (21/05/2025)

VIX, H4: 

The S&P Volatility Index (VIX) has slipped to levels last seen ahead of the sharp rebound in March, continuing to trade below its descending resistance line—reinforcing a broader bearish structure. However, technical indicators suggest that downside momentum is fading, raising the potential for a near-term rebound.

The Relative Strength Index has exited oversold territory, while the MACD remains subdued but appears to be stabilizing just below the zero line. A breakout above the downtrend resistance in upcoming sessions could signal a bullish reversal in volatility, especially if risk sentiment deteriorates.

Market participants are advised to monitor the VIX closely for signs of reawakening volatility, which could ripple across equity markets.

Resistance Levels: 21.65, 26.00

Support Levels: 17.35, 14.70

XAUUSD, H4

Gold prices rallied over 1.8% in the previous session, marking a weekly high and signaling a shift in market sentiment as the metal decisively broke above its prior resistance level. The breakout effectively ended the recent bearish structure, opening the door for further upside.

Momentum indicators reinforce the bullish outlook. The Relative Strength Index is nearing the overbought threshold, while the MACD has crossed above the zero line and continues to edge higher—both signaling strengthening upward momentum.

With technicals aligning and risk sentiment appearing supportive, bullion may be poised to extend gains in the near term, particularly if macroeconomic uncertainty persists or yields ease further.

Resistance Levels: 3315.00, 3363.00

Support Levels: 3275.00, 3222.00