The decline shakes the foundations of Piazza Affari but the Ftse Mib Future could only be at the beginning of the collapse. Before addressing this topic, however, we remind you that September 17 was the day of the 3 witches with the transition from the futures contract expiring in September to the one expiring in December. This technical step explains why the levels indicated in this report are slightly different than those indicated last week when we indicated in area 25.38 the level to be monitored carefully at the end of the day. After a whole week during which the support held up, the last session saw the banks of the rise collapse and the prices plummet.
Before analyzing the short and medium term graph in detail, let’s spend a few words on the causes that have sunk the European stock exchanges. Eurostat confirmed the boost in inflation in the single currency area, with prices rising by 3% in August from the previous 2.2%. This acceleration could push the ECB to raise rates earlier than expected and this is not well seen by financial operators. In addition to this cause, the trend in mining stocks is also weighed on the lists. They have been affected by China’s decision to cut steel production, which has a severe effect on iron ore prices.
The decline shakes the foundations of Piazza Affari but the Ftse Mib Future could only be at the beginning of the collapse: the indications of the graphic analysis
At the close of 17 September the Ftse Mib Future saw hers close quotes to 25,368 down by 0.96% compared to the previous session. The week, on the other hand, ended with an upward variation of 0.25%.
Daily time frame
After a week of highs and lows, the prices broke the support in the 25.385 area, opening the door to a bearish continuation towards the first price target in the 24.830 area. Note that this break was accompanied by a sell signal from the Swing Indicator.
For the bearish scenario to take hold, however, it will be important that this bearish break has a sequel. A recovery of the just broken support, in fact, would put the bearish scenario aside. Otherwise, the prices would be directed towards the objectives indicated in the figure. Where the maximum downward extension is in the 21,860 area.
Only a daily close above 25,745, on the other hand, would trigger the bullish projection that could bring prices back to the 30,000 area.
Weekly time frame
There is nothing to add to what is written in the previous weeks
For the umpteenth time, nothing has changed in the medium term scenario. The prices, in fact, once again confirmed the breaking of the very important resistance in the area 24,060 (I target price). As long as this support is not violated, the prices will point to the next target in the 31.520 area (II price target). The maximum extension of the rise passes through the 39,040 area.
The bears could take control of the trend only in the case of a weekly close below 24.060
