 Hello and welcome to the chart of the week video with me David Madden. Today's date is Friday the 25th of January 2019 and the time has just gone 1201 GMT this week's chart of the week is the nib the Italian market or the Italy 40 as we call it on our platform And we'll start off by looking at the chart at the at the market on a weekly chart so as we can see here between May and December there was a fairly solid sell-off on the Italian market Nice series of lower lows and our highs a classic example of a downward trend But as we can see here with the Mib and also Europe European Asian and also US equity markets we have we did see a bounce back in late December and if you take a look at this candle here You can see here that has got a very long wick and that suggests indecision Then the next candle over is a classic example of a bullish engulfing and then even though we haven't finished this week It looks like we're going to have four weeks in a row of positive gains on the 40th of May So that's quite that's quite a appear to be Regaining some of the ground that's been lost over throughout the back end of 2018 Taking a look of the MACD indicator of MACD histogram We can see there's a steady increase in positive momentum. So as the market is pushing higher We can see that that has been confirmed by the steady increase in positive momentum Taking a look at the market on a daily chart We can see here that the level reached today just about took out the highs of the middle of January So so today we've managed to just eke out a three month high on the Mib So once again, it gives an indication of how well the market is doing We're just Reaching multi month highs And if you look as we know from tau theory the indices or the averages must confirm each other So that Mib has just managed to eke out a three month high Where whereas the whereas the attacks the cack and the ibex have all backed up roughly in a seven week highs So the major euros major euros on indices are all moving in the same direction So we can become more confident that that the recent positive move in the Mib is going to continue And part of the reason why major eurozone indices have been doing well today and also in recent weeks Is because of the european central banks update yesterday. It was a little on the top of side And that's why the the euro denominated and the eurozone Indices have been pushing higher So if the Mib does continue to push on higher from these levels We could look at targeting the psychology important 20 000 and then further in the kind of more medium term if the market does manage to kind of Keep pushing on from the lows of december We could be looking at heading up towards this red line here the 200 day moving average which comes into play Just shy of 20 900 but um There we can't ignore the kind of wider downward trend that the Mib has been in and that ties in the wider downward trend That us equity has been in after that number of months So if the market does manage to turn over on itself again We could find support coming to play from this blue line here The fifth day moving average which comes into play at 18 990 we can see here in recent weeks and months that the 15 moving average acts as both resistance In in december and also as support in january and if a metric has acted as both, you know Will support and or resistance in recent weeks months. It makes it more likely that it will do in the near term And if you do have a size will break below The fifth day moving average We could look at retesting the december lows in around the 17 915 area If you are going to be trading the Mib, uh, please please note that next week on thursday We have both your uh, italian Unemployment and also growth figures as well as eurozone as a whole growth figures Uh, one last thing before we go if you any comments to make in this video Or any of the other videos we've made here at cmc markets, please feel free to leave review and good reviews. Thank you very much