Italy soared today based on mere positive unemployment data regarding Spain (due to the countries having more or less same situation/economical foundation).
But these data does not have anything to do with Italy.
As the ADX shows, the Italian index goes up today but without an indication of a strong trend. This could show us, that the index will go down...
As showed in my previous analysis on Dow Jones Industrial index(US30),also on the Italian major index we can see shaping a strong reversal trend patter(Head&Shoulder) on monthly timeframe.
Also,we can notice that the bull trend started last year in April,due to huge injections of liquidity made by ECB given by a so called tool named Quantitative...
Going into the next few trading sessions i see a long on IT 40 as a viable position.
From technicals we have potential to move lower by a further 200 points, i however see a reversal from the current region potentially sending the index higher.
TP and SL are on screen.
This is not financial advice.
Did you miss me, wolves? 🔥
There is a great formation on IT40.
M pattern on time
It means SHORT🔥
The price had strong bearish sentiment before than entered into correction.
So now the price direct to potential follow of trend and start to move instantly.
Follow the chart and look for the best price to enter...
IT40 Index (FTSE MIB - Italy) is in WXY wave corrective up in 60 min time frame. As shown in chart wave W & X divided in ABC wave pattern, so Y will be complex wxy wave. The volume is increasing in Y wave up, which can easily drive it upward. In weekly time frame, it was in corrective ABC up and down wave as shown in chart. The last drop was C wave down, which...
The Pandemic is not over yet.
But the decline of the Italian stock market has stalled a little.
Are we going to see further declines?
The Chaos Indicates towards a higher chance of a Wave 5 Down.
If it breaks below the box, it is quite possible that it might drop to test the previous lows
Followed by Target 2 which is TZ1 @Fib Exp [ 1.62
IT40 - Italy index is under-performer index among all major markets. It's in C wave down after flat B complex time taking wave. 2nd wave of C down is in progress and may end anytime soon to go down in 3rd sharper down cycle.