FTSE MIB Index Forecast October 18, 2012, Technical Analysis

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The Italian index had a strong session on Wednesday as the recent consolidation level was overtaken by the buyers. The 16000 level gave way, and as such it looks like we are going to go much higher in this market. This is more than likely predicated upon the idea of the Spanish asking for a bailout soon, and as such we think that this market could continue higher as long as there is no firm denial from Madrid.

We will buy on pullbacks, focusing mainly on banks and higher beta names like that. Remember, the European Union has been a virtual minefield for banks lately, and many of them are knee-deep in Spanish government bonds. If the Spaniards get bailed out, this can only help out banks across the continent. Needless to say, Italian ones will be any different.

 

MIB Index Forecast October 18, 2012, Technical Analysis

MIB Index Forecast October 18, 2012, Technical Analysis

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About:FX Empire Analyst - Christopher Lewis

Christopher is a part of the FXEmpire.com analysis team. He writes Forex and Commodities technical analyses on daily and weekly basis. Christopher writes his analyses in a professional and yet simple to understand manner. His analyses are available in both text and videos.

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