MIB Index Futures Forecast November 26, 2012, Technical Analysis

The MIB Index fell initially during the Friday trading session, but bounced off of the 15,400 level in order to form a hammer at the end of the day. We should point out that the 15,800 level above begins a significant resistance area, and as such we are not willing to take this supportive sign as a buy signal. However, if we managed to break down below the bottom of the hammer from Friday, we are more than willing to start selling as we think the resistance is starting to build up as evidence by the lower high is that we’ve seen recently. Also, you have to keep in mind that the problems in Europe are far from being solved and Italy is one of the weaker countries.