FTSE Mib index started the day higher after the White House, and Senate leaders agreed on a $2 trillion relief package to support the US economy during the coronavirus outbreak. FTSE Mib finished over 8% higher as the global recovery in stocks gains traction after the coordinated action by central banks and governments around the globe.
FTSE Mib has lost over 41% since the yearly highs on February 18 while the index has lost over 24% of its value in 2020.
The death toll in Italy from the virus spread rose by 743 yesterday to 6,850, reversing a declining trend in deaths observed over the last three days, while the confirmed cases have topped 70,000.
Italy now has the highest death rate, and the government today announced that people who violate quarantine after testing coronavirus positive could face up to five years in prison.
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FTSE Mib index started the day 4.91% higher at 17,773, as investors sentiment improved after the intervention in the markets by ECB and Fed. The technical outlook for the index Is bearish despite the last two positive trading sessions. A move above 19,115 might cancel the recent bearish momentum.
On the upside, initial resistance for FTSE Mib index stands at 17,824 the daily high. A move above might test March 11 highs at 18,413. A break higher might challenge 19,115 the high from March 10th trading session.
On the other side, first support for FTSE Mib index stands at 17,226 the daily low. In case the selling pressure continues, the next support zone stands at 15,051 the low from yesterday’s session. The March low at 14,148 will provide the next support area.