FTSE MIB Forecast Today - 31/10: MIB 40 Holds Firm (Chart)
Date
10/31/2024 2:36:37 PM
(MENAFN- Daily Forex)
In my daily analysis of European indices, the bourse in Milan has caught my attention, as we have gapped lower, plunged at one point during the early session, and then recognize that the 50 Day EMA is in the picture and offering a certain amount of support. Because of this, I do think that there are a certain number of value hunters out there, opening up the possibility of a significant amount of support underneath.
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It's worth noting that the 50 Day EMA continues to be important, as we have bounced just above that level, and in fact the candlestick for the trading session on Wednesday looks very likely to see a bit of a hammer and up forming. Because of this, it's possible that we may be trying to fill the gap, which is quite common in these indices.
Furthermore, we also have the overall trend showing signs of strength, and therefore I think we've got a situation where simple momentum will continue to see people look at this as a market that should continue to go higher.
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On the upside, the MIB 40 has recently found a lot of resistance near the €35,100 level, and therefore I think you've got a situation where if we break above there, then we could see a bit of“FOMO trading” in this market. On the other hand, if we were to drop to the downside, then we could break down below the 50 Day EMA, opening up the possibility of a drop all the way down to the 200 Day EMA, near the psychologically and structurally important €33,000 level.
You should keep in mind that Milan isn't the first place people put money to work, and therefore it is a little bit further out on the risk appetite spectrum, so one of the easiest ways to see how this might go is pay close attention to the DAX in Germany. If the Germans start to take off to the upside, then quite often the Italians will follow. On the other hand, if the DAX starts to fall apart, then you will see other indices such as the MIB 40 drop.
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