The strong upward impulse of FTSE MIB, the major Italian index, started at the end of December in the area 17900-18400, and now it is testing an important weekly resistance level. Recent positive trend on bank stocks was also triggered by the news about possible Commerzbank / Deutsche Bank merger.
The area of daily/weekly resistance at 21270/21520 is to be considered in all respects the most important for the future of the Italian index: as long as FTSE MIB remains below this price range, the recent uptrend movement can still be classified as a bullish movement, inserted in a negative medium-long term context.
A final important consideration: compared to the downward movement in May / December 2018, that is from 24550 to 17900, the price levels reached this morning correspond exactly to 50% of retracement, done in almost 3 months, of what was lost in previous 6 months!
