Technical analysis FTSEMib: we are running out


The time factor, which is one of the relevant dimensions of the movement of the markets, indicates that the final direction should be chosen shortly.  Let's take an excursus.  </p><div>

            <!-- <EdIndex> --><p><strong>By Fabio Pioli, </strong><em>professional trader and founder of CFI Independent Financial Consultancy (<span style="text-decoration: underline;"></span>)</em>

There are now 30 days when the futures prices on the FTSEMib index remain, with sporadic spills, aimed at making some people go wrong in a directional belt between 20,000 and 19,000 points approximately (Figure 1).


Fig 1. FTSEMib Future – Daily chart

Anomaly? No, normal. If you notice, the market always behaves like this: remains on the side for about 90% of the time (the reason is that people are impatient and gradually take position in the meantime) and then they leave in direction; it lateralizes again for 90% of the time giving people the opportunity to make mistakes and then starts in the direction (Figure 2). It is a pendulum that oscillates incessantly between boredom and pain, with fleeting intervals, and moreover illusory, of pleasure and joy, just as life is, exactly as Schopenhauer would say. On the other hand, why should it be different from life, given that it is one of the manifestations of life itself?


Fig 2. FTSEMib Future – Daily chart.

So if there is the side there will also be the trend. How much will be missing at the beginning of the trend? It seems to us that we are running out. Because? Because we are on resistances, and, after a certain number of evolutions, resistances are either broken or push prices back.

So we are close. But close to what? To a rise or a fall? It is the job of the market not to make it clear to the last and give subtle (but not obvious) clues. Now we can affirm that such indications, having observed an imbalance in one sense, existed and this was enough to make us take a position in one direction rather than another. It is really very clear and very defined and, obviously, it will pay in more than 80% of cases but we cannot say, as already explained in the previous article, which direction without also saying the quantities and the stop-losses, in order not to make mistakes who, reading us, wanted to imitate us. It is therefore very important that you readers do something exclusively with a method that guides your choices in a certain way. It doesn’t necessarily have to be our method but it has to be a method to get you that allows you not to roll the dice every time you do something.

As we always say, everything must be functional to know a priori the right behavior to keep: sell, buy, use the quantity, when to enter, when to exit, such as stop-loss. All very quiet behaviorally, with nothing left to chance. Otherwise nothing is done.

The owner of the analysis that we report here is the author of the same, and the publisher – who hosts this comment – assumes no responsibility for its content and for the purposes for which the reader will use it. The author announces that this presentation presents information that could potentially implicitly or explicitly suggest an investment strategy regarding one or more financial instruments and opinions on the current or future value or price of these instruments and is intended as a marketing communication. As such it does not represent research prepared in accordance with the legal requirements aimed at promoting the independence of investment research and is not subject to any prohibition prohibiting negotiations by analysts and relevant persons prior to the dissemination of the research in investment matters


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