ETFWorld.es

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

GRAFICO CAMBI

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.

19112012

    
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.  

DISCAIMER

This publication is solely intended as information and does not constitute any investment advice or an offer, solicitation or recommendation to acquire or dispose of any investment or to engage in any transaction. Althoughthis publicationis issued in good faith, no representation or warranty, express or implied, is or willbe made and no responsibility or liability is or willbe accepted by NYSE Euronext or by any of its officers, employees or agents in relation to the accuracy or completeness of this publicationand any such liability is expressly disclaimed.No information set out or referred to in this publicationshall form the basis of any contract. The creation of rights and obligations in respect of financial products that are traded on the exchanges operated by NYSE Euronext’s subsidiaries shall depend solely on the applicable rules of the market operator. NYSE Euronext encourages you to reach your own opinion as to whether investments are appropriate or relevant and recommends you not to make any decisions on the basis of the information contained in this publication before checking it, as you will bear full responsibility for any use that you make of it. Persons wishingto trade products available on NYSE Euronextmarkets or wishingto offer such products to third parties are advised, before doing so, to check their legal and regulatory position in the relevant territory and to understand the related risks. All proprietary rights and interest in or connected with this publicationare vested in NYSE Euronext.No part of it may be redistributed or reproduced in any form or by any means or used to make any derivative work (such as translation, transformation, or adaptation) without the prior written permission of NYSE Euronext. NYSE Euronext refers to NYSE Euronext and its affiliates and references to NYSE Euronext in this publication include each and any such company as the context dictates. NYSE EuronextSM, Euronext®, trackers®, are registered marks of NYSE Euronext.

Source: ETFWorld – Day By Day – Indipendent Research

 

 

 

Artículos similares

Technical Analysis: Stoxx Europe 600 Real Estate index : Clearing of the 2011 highs

1admin

Technical Analysis: Stoxx Europe 600 Insurance index: bullish breakout of the triangle

1admin

Technical Analysis: MSCI EM Asia index: towards March 2012 highs

1admin