After a rise of around 10%, the week just ended saw another rise of over 6%. An exceptional result and the bullish signal on the Ftse Mib strengthens, but short-term retracements cannot be ruled out. As we will see, in fact, on the daily time frame, prices are reaching important levels that could cause rapid falls which, without prejudice to the medium / long-term framework, are to be understood as interesting buying opportunities.
Recall, then, that seasonality is conducive to the rise in equity markets. However, this year there is the Covid-19 variable that could change the cards on the table. Even more than usual, therefore, we need to be cautious and carefully monitor key levels to anticipate reversal movements.
The bullish signal on the Ftse Mib strengthens: the levels where there could be short-term retracements according to the graphical and forecast analysis
At the close of November 13 the Ftse Mib Future saw hers close quotes to 20,894, an increase of 0.37% compared to the previous session. The week, on the other hand, ended with an increase of 6.31 %%
Daily time frame
All week was up with the eleventh consecutive session closing higher than opening. An exceptional strength that since the beginning of the month has led to an increase of more than 15%.
The prices, however, are now approaching the important III price target in the 21,190 area which with a very high probability determines at least a slowdown in the current trend. Therefore, a retracement becomes very probable that could bring the prices up to the 20,000 area, giving an excellent buying opportunity to those who have remained out of the market. After this potential retracement it will be possible to go and calculate the new bullish targets.
Only the break of the support in the 19.950 area would lead to a short-term trend reversal.
Ftse Mib Future: ongoing bullish 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
The strong weekly rise served to have the definitive and unequivocal break of area 19.335. At this point the road to the upside towards the objectives indicated in the figure should be cleared.
However, it is not to be excluded, especially if triggered by the lower time frames, that there may be fast retracements. The important thing is that the support in the 19.335 area always remains unchanged at the end of the week.
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 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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Time frame mensile
If the month of October closed below 18.915, weakening the upward projection in progress, for the month of November the recovery of this last level will be decisive to proceed upwards towards the indicated objectives.
Otherwise descents are possible up to area 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 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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Deepening
Market showdown expected to avoid further retracement
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