Italy 40 (ITA40) Is Recovering but Faces Stiff Resistance at 17566

Key Resistance Zones: 24000, 25000, 26000
Key Support Zones: 22000, 21000, 20000

Italy 40 (ITA40) Long-term Trend: Bearish
Italy 40 is currently making an upward move as the 15000 support holds. The upward move is currently facing resistance at 17566. ITA40 will reach a high of 22000 if the resistance at 17566 is breached. The index was previously in an oversold region as the bulls emerge to push the ITA40 upward.

Daily Chart Indicators Reading:
Italy 40 is above 40% range of the daily stochastic. This implies that the market is in a bullish momentum. The index has stayed longer periods in the oversold region but the bulls have emerged. The 21-day SMA is acting as a resistance to the index.

Italy 40 (ITA40) Medium-term Trend: Bearish
On the 4- hour chart, the index is in a descending channel. The index is facing another resistance at 16648. This is after the bulls have broken the resistance line of the descending channel. The bulls have made three attempts at the resistance at 16648 without breaking it. On the upside, if the bulls break the current resistance, the index will reach a high of 19000.

4-hour Chart Indicators Reading
Italy 40 is currently at level 53 of the Relative Strength Index period 14. This implies that the index is in the uptrend zone. The index is likely to rise as it is above the centerline 50. Also, the 21-day SMA and the 50-day SMA are sloping upward indicating the uptrend.

General Outlook for Italy 40 (ITA40)
Italy 40 is currently in an upward move but it is facing resistance at 16648. The index will resume an uptrend if the current resistance is breached. The bulls are emerging from the oversold region to complement the upward move.

Instrument: Italy 40 (ITA40)
Order: Buy
Entry price: 17001
Stop: 16950
Target: 17201

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