On the Italian index the price has broken an important support area. That was located around 21,000 points.

This area is formed by the intersection of exponential moving averages 20 and 200 periods on medium-term time frames. Also above it we can see the conformation of the Ichimoku cloud that acts as a barrier for a possible upward breack.

Basically in the past few days the Italian index has dropped further by more than 2 percentage points. Following the no-confidence motion purposed by Salvini against Prime Minister Conte.

In the short term the trend will continue to be short. Both technically and fundamentally the next target to which aims this index is the static support at around 19500 points. We advise you to position yourself short from this price (20560 points) with the first TP the area of 20100 points. The final target is at 19500. SL in the key resistance zone at 21000 points.

Italy: spaghetti and loss

Italy: spaghetti and loss