The trend is strongly bullish for the Italian index. This from the first days of January to this days.
After the collapse of May (from the highs) it has reached the support area setted at around 18000 points. The price in these 4 months has recovered most of the descent, returning below the key static resistance in area around 22300 points and identified by 23.6% of the Fibonacci retracement. This level, if broken on the upside, will pave the way for the MIB40. It will once again reach the highs reached a year ago. With this expansive monetary policy on the side of the ECB, which will continue to keep rates at historic lows (almost certainly returning to inject money in the Eurozone from September) the markets will be reassured and investors will hold and increase positions on European equities.
The market expects an important reversal of the main world indices after the rally of the last sessions. In the specific case of the Italian index, on reaching the price of 22300 points it is very likely that could retraces. At least up to the support identified by the EMA20 daily and passing through around 21500 points. The maximum extension that could touch the key support placed at 20900 points.
For a few sessions this uptrend should not stop. On reaching 22300 points, we will open a short position and keep it in the portfolio for a very short/short period.