SELL the Italian MIB if it BREAKS the key SUPPORT 21,800
The MIB has been in a trading range since the Italian crisis in May 2018. In that May-decline the MIB had already lost 13%.
The consolidation since late May is likely to have registered another peak on 31.7.2018.
Today, the MIB is selling off again.
If the present decline is Wave D (down) of the Triangle from late May then the MIB could easily fall to 21,400. Another short-term rally could be seen from this support. However, such a rally is unlikely to gain much magnitude. Rather, the downtrend could gain more momentum with a break of 21,400. The next supports would then be at 20,900 or 20,000 and 17,000.
THE BREAK OF 21,800, 21,720, 21,620, 21,400 WILL TRIGGER THE NEXT SELL SIGNALS.