The FTSE MIB is trying to rebound from key support at around 21,500 points
On the technical side, the FTSE MIB is trying to rebound after temporarily returning to test major support at 21,500 points on Tuesday. The MIB jumps after the announcement of an ECB meeting, which is forming a ‘morning star’ reversal pattern, but a daily close as is will be needed to confirm this pattern.
If so, the outlook would turn bullish again in the near term. The first bullish target would be a return to the 50-session moving average, currently at 24,000 points, then to the May high at 24,850 points.
Conversely, a drop below the low of 21,500 points would pave the way for a continuation of the underlying downward trend, which clearly remains the scenario envisaged in the long term given that the European and American economies have increasingly more likely to fall into recession in the coming quarters.