MIB Index Futures Forecast December 31, 2012, Technical Analysis

The Milanese index fell during the Friday session as we found the 16,500 to be too resistive. Looking at this chart though, we have obviously broken out to the upside and 16,500 is a hurdle to overcome. We still think that the 16,200 area should offer some form of support, and as a result we are looking to buy some type of supportive candle. With this being said, a hammer or a nice green candle in the general vicinity would be the way to go, and we do believe that the markets are primed to continue much higher as the breakout has been nice and strong. As for selling, we do not think that will be the way to go as traders will certainly come back in January and start to push the markets higher.