IT40 Technical Analysis Report 29 October, 2020

  • IT40 remains under bearish pressure
  • Likely to test support level 17500.00

IT40 remains under the bearish pressure after the earlier breakout of the powerful support level 18435.00 (which previously reversed the price with the daily Morning Star in the middle of June). The breakout of this support level coincided with the breakout of the 38.2% Fibonacci correction of the previous multi-month ABC correction (2) from March.

Given the extension of the active impulse waves (iii) and 3 – IT40 is expected to fall further toward the next support level 17500.00 (intersecting with the support trendline of the daily down channel from July). The breakout of the support level 17500.00 should lead to further losses toward the next round support level 17000.00 (May’s strong support).

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