How far can the current decline on the Ftse Mib Future go from which we are now watching da mesi?
Before answering the question, let’s remember one thing that we repeat in all our articles and that is protecting us from the constant revolutions of the market. We are, in fact, witnessing
a sequence of false signals up and down that are putting a strain on the nervousness of even the most experienced investors.
The week just ended saw a decline of about 7% fueled by the explosion of the pandemic around the world. However, thanks to an astonishing quarterly GDP that kept the Italian stock market afloat, the last session of the month saw the Ftse Mib Future do better than the rest of the main world indices.
A bullish signal or how far can the current fall on the Ftse Mib Future go?
Graphical and forecast analysis on the Ftse Mib Future
At the close of October 30th the Ftse Mib Future saw hers close quotes at 17.901, an increase of 0.54% compared to the previous session. The week, on the other hand, ended with a downward variation of 6.86%
Daily time frame
As we had anticipated, the weekly session, after the break of the key support, was all bearish and quickly reached the price target in the 17.810 area. Ready, then, for a new bearish acceleration? The last session of the week shuffled the cards as we saw support recovering at the close of the session.
The departure in November will therefore be decisive. If the recovery were to be confirmed, it could return to the 19,000 area. Otherwise it would continue to fall towards the bearish targets indicated in the figure.
Ftse Mib Future: ongoing bearish projection on the daily time frame. The red oblique lines represent the Running Bisector levels; the horizontal lines the levels of The New Law of Vibration. The volume for each price level is shown on the left. The middle panel reports BottomHunter’s signal. The minimum on the considered time frame is marked when it is equal to 1. The lower panel shows the volume traded for each bar compared with a 20-period zero lag exponential moving average.
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Weekly time frame
After weeks and weeks of dancing around the key level in the 19,335 area, we have seen the lowest close since May 2020. Not a good sign.
Important, with this in mind, check what will happen near the support in area 16.660. A weekly close below this level would cause prices to collapse first towards 13,800 area and then towards 9,600 area.
Until such a break occurs, increases are possible which, however, would become lasting only in the case of weekly closings above 19,335.
Ftse Mib Future: ongoing bullish projection on the weekly time frame. The red oblique lines represent the Running Bisector levels; the horizontal lines the levels of The New Law of Vibration. The volume for each price level is shown on the left. The middle panel reports the BottomHunter signal. The minimum on the considered time frame is marked when it is equal to 1. The lower panel shows the volume traded for each bar compared with a 20-period zero lag exponential moving average.
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Time frame mensile
The month of October closed below 18,915, weakening the ongoing upward projection. Descents are therefore possible up to an area of 16,890. For the month of November it will be decisive to maintain this last level to avoid descents with a target in the 9,600 area.
Ftse Mib Future: ongoing bullish projection on the monthly time frame. The red oblique lines represent the Running Bisector levels; the horizontal lines the levels of The New Law of Vibration. The volume for each price level is shown on the left. The middle panel reports the BottomHunter signal. The minimum on the considered time frame is marked when it is equal to 1. The lower panel shows the volume traded for each bar compared with a 20-period zero lag exponential moving average.
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