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
The market divergence between European and American stocks just let me think that some countries in Europe will underperform. Besides I just identify a selling signal in Italian stock market and even if it is not the case, the timing seems to be perfect.
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.
The Italian stock index recently concluded cycle wave 2 counter trend up and it is developing primary wave 1 down. The current upward movement is a counter trend that could be labeled intermediate wave 4 or primary wave 2. The log-term forecast is the same in either cases, after this counter trend up the index should go for a long-term downward path. FOLLOW...
