FTSEMib Technical Analysis: Tug of War

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

We will soon in this same article comment on what we think the graphic form of the FTSEMib index says. But let’s focus first on what is most important: what to do and what mistakes to avoid.

We repeat ourselves: the biggest mistake of 2024 will be buying badly. It is obvious that as soon as prices fall the thought of buying appears. It’s normal and – to tell the truth – this is precisely the strategy addressed to its customers: buying at the right time and based on a valid indication. The point is that this applies to us because we know exactly where to enter and where to exit but this does not apply to you.

For you, without having any confidential information that has the odds all in your favor, it is better for you to refrain from buying and refer to the following graph (Figure 1). Related to it comes the question: “am I buying high or am I buying down?”. Since the answer is obvious, refrain from buying.

Fig 1. Future FTSEMib – Weekly chart

On the graphic side, the answer is not so unambiguous: it cannot be. There must always be a “tug of war” between bulls and bears that makes the forecast unclear. And this is why we also consider longs, if they are reported as valid and on the main stocks.

In fact, as it should be, in going down the market stopped right on its supports and rebounded here (Figure 2).

Fig 2. Future FTSEMib – Weekly chart

Is there therefore a possibility that 32,800 points is a support price from which to start again to return upwards in a bullish trend that breaks the highs? Absolutely yes. Is there a possibility that 32,800 will instead be broken down and then the downtrend will be exacerbated? Yes, this is also possible.

What remains true is that, in the absence of signals, be they short or long term, you do not have the basis to take either of these two trends so it is better that you refrain from buying.

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