Friday, 16 December 2011

SPX and MIB analysis

SPX bounced off the 50% retracement and finds resistance at the blue downward sloping trendline. We could see a pullback that can test 1210. 1249 is a feasible bounce target but a move much higher can ruin the chances for a sharp decline below 1200.

MIB bounced at 61,8% retracement and moves on the orange trend line. Today it may break this line and move much higher. This is a bullish developement that we mentioned yesterday. 76,4% retracement is very important not to break because the long scenario will have very few chances. The decline looks corrective and buying with a stop around 14100 may prove a profitable chance.

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