Italy’s FTSE MIB Index still remains more than 60% below its record high reached pre-2007 financial crisis, as shown on the monthly chart below.
It’s facing major overhead resistance with the convergence of a triple top price formation, 40% Fibonacci retracement level, and the lower edge of its original uptrending channel around 24,568, which is still a long way above its current price, but which may act as a depressant and contribute to volatile swings until it eventually retests that level and either breaks and holds above, or is rejected.
Also, 24,568 is approximately the median (major resistance) of an Andrew’s Pitchfork formation on the monthly timeframe, as shown on the chart below.
Near-term minor resistance and support sit at 22850 and 21500, respectively, as shown on the daily chart below.
With no clear majority victory for any political party in Italy’s recent general election, I’d say that volatile swings that began in March of last year will continue in this index until price breaks and holds above or below this 1,350-point consolidation zone, in the short term.
