MIB Index Futures Forecast December 28, 2012 Technical Analysis

The Milanese index gained slightly for the session, but only about 60 points as the markets were relatively quiet. We are currently bumping up against the 16,500 level, which we see of course as massive resistance. Nonetheless, we have broken the resistance areas below and we feel that it is only a matter time before this level gets broken.

The biggest problem of course is the fact that we are in the very last couple of trading session for the year, and as a result there aren’t that many people trading. This will continue to hamper any gains in this marketplace, but we feel that in January the market will step up and break through. Because of this, we are not ready to start selling, and need to see a daily close above the 16,500 level in order to start going long.