FTSE MIB: Large bear wedge continuation pattern – Credit Suisse
Italy MIB is retesting its recent breakdown point, which economists at Credit Suisse expect to cap to keep the risks lower.
“The market maintains it’s large bear ‘wedge’ continuation pattern, which suggested the 2012/2020 price action is corrective within an ongoing downtrend and we therefore expect further weakness over the next couple of months.”
“Even taking a more conservative pattern, the ‘double top’ completed below 17914, suggests further weakness toward the 2012 low at 12295, with first support beforehand seen at 15118/14155, where the market recently found a floor.”
“Key short term resistance is seen at the 17545/18030 breakdown point, above which would set a small base to suggest the worst of the selling may be behind us.”