As the coronavirus spreads to various areas of the planet, central banks and governments of individual countries develop measures to deal with a major global recession for the first two quarters of the year.
The focus is now on the Eurogroup meeting scheduled for next Tuesday, where will try to find a "compromise solution" in order to get out of this serious economic situation as soon as possible.
The correction in progress is finding in FtseMib area 16,000 a valid support, we expect at this point a closure above 16,900 for a first short-term bullish signal with the objective of the recent maximum rebound in area 17,900; only above this level will we be able to speak of a medium-term reversal, and at that point we could really think that the worst has passed and that a recovery towards the subsequent resistance at 19.150 and area 19.800 / 20.000 is possible by the month of June.
Negativity instead in the event of a new fall below 16,000 FtseMib; the chances of a new bearish leg with a target currently limited to 14,000 FtseMib points would be high.
From an operational point of view, it is advisable to keep the invested at 50/60%, and with 20/30% of liquidity, operate at this point only when the index has exceeded 16,900; purchases near the support of 16,000 are always possible, but presupposes a decidedly higher risk.