E-Mini Crude Oil Futures Volatility Forecast (19/12/2010)

The E-Mini Crude Oil prices are trading almost sideways and our previous week’s forecasts managed to anticipate such a phenomenon.

The volatility is now back to 1.6% (25% annualised) and the great reliability of this level over the last 5 months seems suggesting that, although some short-term retracements could still happen, the price should break through the $ 90 a barrel in the mid-term.

The sideways movement around the $ 89 – $ 90 area and the increase in volatility due to short-term drops have been successfully forecasted by the staff of HyperVolatility over the last 3 weeks. Furthermore, the volatility reverted to its mean value in a fairly short period of time and this is a clear signal that investors are still bullish and not willing to get rid of their longs despite the price keeps hitting a strong resistance level.

The staff of HyperVolatility is still bullish on E-Mini Crude Oil futures. Particularly, the continued sideways movements just below the $ 90 area look like an accumulation strategy and the fairly low and stable volatility is backing such a hypothesis.

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