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E-Mini Crude Oil Futures Volatility Forecast (01/02/2011)

The $ 89 a barrel target has been hit as successfully forecasted the last week and the sideways movement that we anticipated effectively occurred.

The volatility plot is once again upward sloping and since the 2.3% (36.5% annualised) level has been broken we are expecting a further augment in market fluctuations with readings around 2.4% – 2.5% (38% – 39.6% annualised).

The $ 90 a barrel turned out to be a harder than expected resistance level and it is reasonable to believe that E-Mini Crude Oil futures are going to head south over the upcoming days.

The staff of HyperVolatility is bearish on this market and suggests you to close out your long positions, if you still have any on, and focus on the short side because a significant drop would not be a remote eventuality.

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