OVX Oil Volatility and WTIC Oil Daily Charts; Death Cross

The OVX shows the wild spikes higher in oil volatility as oil fell off a cliff screaming the whole way down. The OVX hit nearly one hundo a couple times. The green circles show the peaks in the OVX at maximum fear and panic. Oil traders are panicking saying price is going to zero and the end of the world is near and, of course, that is when price bounces.

WTIC oil price keeps testing the lows day after day for the last three weeks but note how volatility is not printing sideways or higher; instead, the OVX is trending downward. This divergence with price weak but volatility not as weak hints that oil price may be searching for a bottom.

You can watch the OVX and if you see it spike above 60-65 again, buying oil appears prudent. The death cross for West Texas crude is highlighted with the gray circle. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.