Last week the Italian stock market (MIB) pushed above the .382 retracement of the bear move from July 2015 to June 2016 and has now reached the next resistance area of the double top in the low 19,000 area.
The daily RSI has a bearish divergence in the overbought zone that is confirmed by a bearish divergence on the MACD histogram.
There is a high probability the MIB has either made a top or is very close to one. If in the short term MIB can continue to move up, it probably won't go much above 19216 - the March 2016 top.
The MIB has been moving up with other international stock markets, many of which are also near tipping points - see my posts on the SPX and other US stock indexes.
If the MIB declines it will probably retrace at a minimum to the June 2016 bottom.
Mark
The daily RSI has a bearish divergence in the overbought zone that is confirmed by a bearish divergence on the MACD histogram.
There is a high probability the MIB has either made a top or is very close to one. If in the short term MIB can continue to move up, it probably won't go much above 19216 - the March 2016 top.
The MIB has been moving up with other international stock markets, many of which are also near tipping points - see my posts on the SPX and other US stock indexes.
If the MIB declines it will probably retrace at a minimum to the June 2016 bottom.
Mark