FTSE MIB: Crucial support at 17914/17333 broke – Credit Suisse

As the market remains clearly below its 200-day average, currently at 22329, the FTSE MIB is heading toward the 2016 low at 15017, according to economists at Credit Suisse.

Key quotes

“Italy FTSE MIB continues to fall sharply after reversing from its key long-term resistance at 24558/570 – the series of highs stretching back to 2009 and 38.2% retracement of the entire 2007/2012 bear market, in line with its recent large ‘bearish outside month’.”

“The market is now testing below the key 17914/17333 support zone and although we are watching carefully for signs of a reversal from here, if 17914/17333 is broken on a weekly closing basis it would complete a major ‘double top’ to suggest further weakness toward the 2016 low at 15017 and even beyond.”

“A move back above distant 21151/22035 gap resistance would ease the current pressure and then likely lead to a test of the 200-day average, currently at 22329.”