Technical Outlook ITALY 40 31.07.2017

Technical Outlook ITALY 40 31.07.2017

ITALY 40

ITALY 40 Index – recovery rally leaves higher low at 21355

Fresh strength on Monday signals that corrective phase from new multi-month high at 21670 which found support at 21355 on Friday, might be over.
Recovery rally pressures pivotal barrier at 21550 (Fibo 61.8% of 21670/21355 pullback) firm break of which is needed to confirm reversal and higher low at 21355.
Rising hourly cloud which contained corrective action continues to underpin recovery action.
Sustained lift above 21670 to signal bullish continuation and expose targets at 21888 (Fibo 138.2% projection of the bull-leg from 20465 trough) and 21992 (Fibo 76.4% retracement of 24158/14980 descend).
Rising hourly cloud is spanned between 21479 and 21373, marking initial support zone and guarding pivotal support at 21355 (Friday’s correction low, loss of which will be bearish and activate alternative scenario of deeper correction.

Res: 21596; 21640; 21670; 21888
Sup: 21479; 21420; 21373; 21355

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