Italy 40 (ITA40) Resumes Uptrend, Approaches Overbought Region at Level 20400

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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
The index is rising and in an uptrend. A correction candle body tested the Fibonacci 0.50 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, the second target will be 2.0 extension level.

Daily Chart Indicators Reading:
The 21-day SMA and 50-day SMA are sloping upward indicating the uptrend. The market has risen to level 61 of the Relative Strength Index. It indicates that the index is in the uptrend zone. It is also above the centerline 50.

Italy 40 (ITA40) Medium-term Trend: Bullish
On the 4- hour chart, the index is an uptrend. The uptrend was resisted at level 20500 as the index plunged to level 18500. The support at 18500 was retested twice before the resumption of the new uptrend. The new uptrend is still rising. The index is facing resistance at the 2.0 extension level.

4-hour Chart Indicators Reading
The index is above 80% range of the daily stochastic. It is approaching the overbought region of the market. Italy 40 is in a bullish 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 resuming a fresh uptrend. The index will rise and reach a high level of 1.618 and later at level 2.0 Fibonacci extension level. In other words, the index will reach a high of level 24000.

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