OVX is oil volatility which will tend to move opposite of the oil price. When volatility is low, oil prices float higher such as in September and from December to present. However, note how the OVX is testing the 200-day MA at 33.56. Oil price bears win big if OVX moves above 33.56. Oil price bulls win big if OVX remains below 33.56. Oil prices are elevated and the day will come when oil will move lower, but the question is if it is now? The US-Iran-Iraq Crisis creates buoyancy in oil prices although yesterday it appeared that the drama is all priced-in.
Brent oil tagged 70 yesterday and is printing 68.23 now. WTIC oil is at 62.72. OIl is down -0.9% today. For the weakness to continue, the OVX must take out the 200 to the upside, if it does not, oil prices will continue higher. It's not rocket science. 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.
Note Added Tuesday Morning, 1/14/20, at 8:00 AM EST: The battle continues. OVX is at 34.25 so the oil bears are winning. The 200-day MA is at 33.64.
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