Technical Analysis: FTSE MIB index: Consolidation towards the major support


Technical Commentary: The  FTSE  MIB  index  replicates  the  industrial  diversity  of  the  Italian  market.…….


Day By Day – Indipendent Research

This  index  used  to  evolve  in  a  bearish  trend, interrupted by  the breakout of a double bottom  reversal pattern,  formed above  the 12332 points major support. This  technical pattern, if confirmed by the current corrective move, should allow a sustainable bullish dynamic to unfold. We are thus bullish over the medium term.


Anticipation :

In  the shorter term, after a sharp bullish acceleration  triggered by  the breakout of the reversal pattern, prices are consolidating.

The  15087  point  support,  combined  with  the  38%  retracement  level,  has  just  been  breached,  opening  the way  for  a  deeper correction  towards  the  14500  points  major  support.  This  level  is  important:  tested  many  times  as  a  support  as  well  as  a resistance, it corresponds to the double bottom neckline strengthened by the 50% retracement level. We can anticipate that a test of this key level would cause a bounce to 15810 points. We are thus short-term bullish.
We set  the  invalidation  threshold of  this scenario slightly below  the 14500 points major support.  Its breach would  invalidate  the double bottom pattern.

Close price 14855,79

2 months Opinion BULLISH
2 weeks Opinion POSITIVE

Resistances 15810 / 16281 pts
Supports 14500 / 13973 pts

Follow-up Analysys: On  October  12,  we  recommended  the purchase of the EuroMTS Highest-Rated Gvt 1-3Y  index.  Since  then,  prices  keep progressing  towards  our  164.50  points target.  


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Source: ETFWorld – Day By Day – Indipendent Research




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