MIB Forecast October 17, 2014, Technical Analysis

The Milanese exchange fell fairly hard during the session on Thursday, but found enough support at the 17,600 level to turn back around and form a new hammer. This hammer of course suggests that the market will bounce, but we need to clear at least 19,500 to feel comfortable buying this market. In fact, we believe that a bounce from here will more than likely offer selling opportunities going forward, and we will sell resistive candles above as they appear. On the other hand, if we finally break back above the 20,000 level, we believe that the market go much higher.