Italy 40 (ITA40) May Continue Upward Move Despite Sellers’ Emergence

Estimated Reading Time: 2 minutes

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Azeez Mustapha

Updated: 13 October 2022

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

Italy 40 (ITA40) Long-term Trend: Bullish
Italy 40 is rising and in an uptrend. A correction candle body tested the Fibonacci 0.618 retracement level. This indicates that the index’s first target will be at the 1.618 extension level. The trend is likely to continue after the first target. Therefore, after correction, we will determine the second target if the uptrend continues.

Daily Chart Indicators Reading:
The 21-day SMA and 50-day SMA are sloping upward indicating the uptrend. The market has risen to level 76 of the Relative Strength Index. The index reached the overbought region. Sellers will emerge to push price down. After the retracement, the uptrend is likely to continue.

Italy 40 (ITA40) Medium-term Trend: Bullish
On the 4- hour chart, the index is an uptrend. The market has been overbought for some time. The price is retracing after reaching the overbought region. After retracement, the upward move will resume.

4-hour Chart Indicators Reading
The index is below 80% range of the daily stochastic. Italy 40 is in a bearish momentum. The SMAs are also sloping upward indicating the upward move. The retracement fell to the support of the 21-day SMA.

General Outlook for Italy 40 (ITA40)
Italy 40 is currently retracing after price reaches an overbought region. Sellers have emerged to push prices down. The market may retrace to level 19580 before a resumption of a fresh uptrend.

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