As with all the major equity indices, the FTSE MIB had a very good run this far but it is now facing a very crucial point for the price level.
Looking at the daily chart below, it is hard to go un noticed that the index has stopped its upside exactly when it reached the 200 moving average. This moving average is considered as one of the strongest and hence I am not really surprised that it is acting as a strong support.
Also, the Kimura Trading ‘Sniper Pattern’ has just showed us a ‘Spinning Top’ formation which might indicate that a change in trend is on the horizon.
Interestingly, a very similar situation is seen for the weekly chart. The index level has just hit the 200 moving average whilst the 50 moving average is also close by with both acting as resistance levels.
All in all, I think that it is a very plausible idea to go Short the INDEX as I cannot see any strong upside from the levels we have today. The target as shown by the Kimura Trading 'Range Indicator' stands at 18,318!
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