The Ftse Mib Future today retraces and leads to 21.560. Since the beginning of the year it has marked the maximum at 24,561 and the minimum at 16,080. Has the decline since the year 2000 ended for this stock index?
Many times on these pages, we have been discussing this possibility in recent years and often the answer to our question has been negative. This time, however, we are more likely to see the hypothesis of a multi-year bottom materialize.
Looking at the economic situation of our country there is no need to be happy. We are a cumbersome machine that continues not to put a hand to reforms that could attract important foreign investments and beyond. Slow justice (not certain and the same for everyone?), Elephant bureaucracy and public administration running water on all sides, high taxation. Waste of local authorities and more.
It must be said that history teaches that sometimes events like this pandemic have accelerated economic flows and geo-economic situations and led to epochal changes. The coronavirus, the MES, the Recovery Fund, not only in our opinion, will change the European Union but could lead to significant benefits to Italy which this time could find the strength to turn around from this devastating twenty years from an economic point of view. The worst of this recession and first stagnation, perhaps could really be behind us.
Has the decline since the year 2000 ended for this stock index?
The Ftse Mib falls from the year 2000 after having scored a maximum in the 51,000 points area.
From a graphical point of view, it is interesting to note that the minimum recorded in 2009 continues to maintain the multi-year trend upwards. On the contrary, the technical situation, despite the sharp slide in March this year, tends to strengthen.
For this reason, our view remains unchanged compared to previous years and is the following: probably the low of 2009 will remain epochal and represented the restart.
What to wait for in the next 6/9 months?
A November close above 20,995 would validate an ABC swing with an area target of 25,500 / 26,200 to be reached by / by July 2021. Otherwise, we will wait for further confirmation.
We will proceed step by step.
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