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Technical Analysis: FTSE MIB Index – support broken and then reintegrated

Technical Commentary : The FTSE MIB aims to replicate the sectoral distribution of the national Italian market, bringing together the 40 largest  stocks listed on the Milan Stock Exchange. This index has been evolving in a bearish trend for several years…….


Day By Day – Indipendent Research


This trend was interrupted with a bearish excess below the 12775 support; then, prices overflowed the 14,420 points major level. This long-term reversal will be only completed above 17,133 points, major resistance corresponding to the October 2011 and March 2012 tops. Under this obstacle, the trend is neutral in the medium term.

08102012

    
Anticipation :  

In the shorter term, the overflow of the 14,420 points major level confirmed the reversal of the dynamic and generated a  sharp bullish acceleration. After a precise 38.2% correction of the previous bullish leg and a brief bearish excess below the 15,360 support (former resistance), prices resumed their bullish trend even stronger. The next movement is expected to join the resistance 16,765 points, the previous top of the dynamics. The rising 50-day moving average is a dynamic support confirming this expectation. The trend remains bullish in the short term and we set the invalidation threshold of this scenario slightly below the 15,360 support points, the last level of rebound.


Close price 15876,25

2 months Opinion NEUTRAL
2 weeks Opinion POSITIVE

Resistances 16068, 7 / 16765,2 pts
Supports 15360,0 / 14420,0 pts


Follow-up Analysys:On October 10th, we have recommended the purchase of MSCI EM Eastern Europe index ETFs related. Since then, prices have started to bounce on the 195.50 points support and they are now heading towards our 220.10 points target.

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Source: ETFWorld – Day By Day – Indipendent Research

 

 

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