The Ftse Mib reacted strongly from the minimum touched at the start of the week, returning to the 24,000 area. What to expect at Piazza Affari at this point?
Piazza Affari was tested after the coronavirus case so the Ftse Mib reversed, like the other stock indices, falling on the vital support of the 23,500 points.
From this level there was a ready rebound of the index, which returned yesterday just over 24,000 points, with the next target at 24,090 points.
With the overcoming of this last resistance, the Ftse Mib will point to 24.344 points before and then to 24.670 points.
If the index is able to overcome these obstacles, new spaces for growth will open up with the possibility of reaching 25,600 points ahead of time.
The bullish scenario just described will be negated by the possible breakdown of the trendline and the static and dynamic support that all three cross at 23,450 Ftse Mib points.
The index should therefore not fall below the level just reported, under penalty of a sharp drop towards 22,900 and 22,500 points, indicating as a last base a much lower level of 21,640 points.
My idea is that the Ftse Mib is better set at this moment than other stock indices that have to recover and regain the first resistance that will determine a return of positivity.