FTSE Mib is deeply retracing since May 2018, after the Italian political election, when the index broke the main trend support as well as the support offered by 50 and 200 days EMA.
Since May, the index is down 21% and overall indicators doesn't seem to suggest a reversion anytime soon.
MACD shows bearish signals as well as 50/200 days EMA diversions.
From a technical point of view, the Italian index could trigger something like a wave (5), and if this is correct, we do not rule out a new TOP in the medium term. That said, we can try to take a long position around 21.536/21.351, and put stop loss below 21.153. This setup has a good R/R ratio (> 1: 3).
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On the 23 of January the Italian index touched its upper trend line completing intermediate wave (E) of Primary wave B (circle) triangle. This triangle pattern has been under construction since the low of 2009 and is now complete. This touching of this upper trend line also coincided the the Nasdaq composite and the Nasdaq 100 touching the upper trend line of...
FTSEMIB Weekly - Update - 27/01/2018 09:29:28
Fourth week upward with decreasing strength
closing under multiday R1 support at 23879.84
it makes me think that the strength will continue to dim bringing even
a few negative candles in the next two weeks
which could lead us to test weekly support
placed at 23331.58
New high at 24050.15, which I think will not be...
FTSEMIB Weekly - Update - 01/13/2018 10:24:25
Very positive week even the one just passed that has opened the way
to zone 23880, but that we will not reach immediately.
Next week I expect a bit of profit taking that will be there
lead to review area 23133
But be careful with shorts, strong hands are still all long and hunting
The weekly adx has...
We can see a trend that is probably going to invert its raise by studying the EMAs and MACD 3/10. The croosing of the 2 EMAs (20 and 50 periods) is a signal of a changing situation, this is strengtened by the extended MACD divergence that doesn't confirm the new relative maximums.
If this trend inverts possible price goals could be found with the Fibonacci retracement.