FTSEMib technical analysis: destined above 35,000?

By Fabio Pioli, professional trader, creator of Miraclapp, the largest extra income platform

As written in last week’s article (“FTSEMib: some speculation”), the graph of the Italian index is inclined to state that the trend is bullishalthough in its final phase (wave 5) it is destined to continue.

This would seem to go beyond the interpretation of Elliott subwaves since, within the final wave 5 (Figure 1)

Fig 1. Future FTSEMib – Weekly chart

we would find ourselves either in wave 5 of 5 of 5 (Figure 2)

Fig 2. Future FTSEMib – Daily chart

or in sub wave 3 of 5 of 5 (Figure 3).

Fig 3. Future FTSEMib – Daily chart

What to do with all this information? “Very” And “Nothing”.

“A lot” because they say exactly what are the things not to do: to be precise, don’t buy (because you would buy in the final wave, i.e. in the last part of the journey and it is never wise to be late) and don’t go short (because you would be going against the trend and therefore at risk of “scalp”). Upon closer inspection they also say what is the right thing to do, i.e. progressively freeing oneself from existing bullish positions but this is almost useless to say because the small saver has already done it independently for a while, most likely.

“Nothing Why they don’t tell you what to do, if by this we mean buying and selling. Instead, they say to carefully monitor the supports of individual stocks in order both to free themselves from bullish positions and to go short at the right time.

And this, be careful, is the only thing you need to know: the fact that you wrote that you can go above 35,000 is only a graphic opinion; the fact of monitoring the supports before taking action (shorting or unloading securities) is instead a graphic truth.

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