DJ EuroStoxx50 Futures Volatility Forecast (13/02/2011)

The last week we forecasted a market price near to the 3,030 points and Friday’s closing price was 3,042. The staff of HyperVolatility was correct once again.

The volatility is now around 0.8% (12.6% in annual terms) which is its equilibrium point and it seems that the TGARCH curve is downward sloping   emphasising the fact that the bullish movement of the DJ EuroStoxx50 futures could continue to head north even in the upcoming days.

On the other hand, a retracement should not be considered as a remote probability event because the volatility is quite low and, although fluctuating around its balance level, a retracement of the European Index could occur any time.

The staff of HyperVolatility remains moderately bullish on this market and we genuinely think that the price will hit the 3,050 zone soon. However, we remain quite sceptical about the strength of this uptrend because a short term drop could surprise many investors and wipe out their returns.

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