Italy 40 (ITA40) Faces Rejection at Level 23000, Resumes Downward

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

Italy 40 (ITA40) Long-term Trend: Bullish
Italy 40 is in an uptrend but faces rejection at level 23000. The index is falling and may reach the previous low of level 21078. The price action is characterized by small body candlesticks called Doji and Spinning tops. Sellers and buyers are undecided about the direction of the market since November.

Daily Chart Indicators Reading:
The 21-day SMA and 50-day SMA are sloping upward. It indicates the current uptrend. The market has risen to level 61 of the Relative Strength Index. It indicates that the pair is likely to further to rise.

Italy 40 (ITA40) Medium-term Trend: Bearish
On the 4- hour chart, the index is in a downward move. On January 11 downtrend, a retraced candle body tested the 50% Fibonacci retracement level. This indicates that the index will fall to level 1.272 Fibonacci extension level. That is a low of 21993.

4- Hour Chart Indicators Reading:
The 21-day SMA and 50-day SMA are sloping upward. The index is below the 40% range of the daily stochastic. It indicates that ITA40 is in a bearish momentum.

General Outlook for Italy 40 (ITA40)
Italy 40 has resumed a downward move after it was resisted at level 23000. According to the Fibonacci tool, the current downtrend will extend to level 21993.


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