In the monthly chart, Italy’s benchmark MIB-40 index is stuck in a wide rangebound market between 12.000 and 24.000 since it bottomed in 2009. Currently placed at the higher end of this range, but there is huge resistance above, where it has failed a couple of times in the last years. In the last 4 months, MIB-40 worked out part of the overbought conditions that were created since summer 2012. In the daily term, the trend is up, so we would at least avoid short positions for now. My best guess for the long term is that the highest end of the range will be re-tested.
Chart courtesy of investing.com. http://investing.com
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