 Hello and welcome to the chart of the week video with me dead laden today's date is Wednesday the 23rd of May And the time has just gone 1240 British summer time This week's chart of the week is the 40 minute the Italian market as we call it here on a platform the Italy 40 Take a look now at the weekly chart. We can see since the lows of 2016 you can see that the Italian market a lot of many global global market has had a terrific run But in recent weeks, we have seen a quite a sizable sell-off And the in the Italy 40 this is all down to political uncertainty in Italy There's a possibility we could have a new government Italy to populous parties to your skeptic and Anti-euro parties could be looking to form a coalition government And this is as rattled investor confidence in the in the country's index There's even Scrutiny being applied to Giuseppe Conte who's tipped to be the next Italian Prime Minister This allegation that he wasn't entirely truthful on his CV This is also adding political certainty and pressure to the footsie to the footsie maim So we've been drifting off for the last two or three weeks Where can we potentially drift lower to well this blue line here is the 50 week moving average it comes into play at 22,448 and notice how in early parts of 2018 We did see that level act as support so so move to the downside from here We could see the 50 week moving average be targeted at twenty two thousand four hundred and forty eight Taking a look now at the weekly at the daily chart We can get an idea of how much the market has declined in the past two and a half weeks As we can see there's been a sizable sell-off in the past two and a half weeks This is has also been confirmed by the steady increase in negative momentum on the MacD indicator The MacD Instagram here is is steady rising so while the market's driving lower We can see that the momentum but by the bears by the sellers is actually on the rise So if you do manage to kind of push lower here And if you do manage to drop below this red line the turning moving average that comes to the play at twenty two thousand six hundred and eighty nine Should you move smooth south of the turning moving average? We could be looking at targeting the April low or the early April low of twenty two thousand two hundred And if you go south of there, we could find support from the twenty two thousand figure itself Twenty thousand is a big cycle on June number But also we could see in recent months to our twenty eighteen It did act as a decent area of support And if you go and if you have a size of a break south of twenty two thousand You could be looking at testing the the lows of twenty eighteen which come into play at two thousand twenty one thousand four hundred and fifty two But the the two hundred day moving average is this red line here has also acted as a significant level in recent months We can see both back back in back in January and also a few times in February March It did manage to act as support So if we do see the market running to run find support from the two day moving average at twenty thousand Six hundred and ninety three we could see the market bounce higher And if you do manage to see it bounce higher Where could we go when we potentially bounce back up toward this blue line here at the fifth of the moving average Which comes into play at twenty three thousand three hundred twenty nine notice how it did manage to act as resistance In both February and and also and also in March They're actually active support in April as well So while a market has recent history of acting as support and or resistance It makes it more likely that it will do again in the future And if you do have a size of a break north of this blue line here The fifth of the moving average the next there to keep an eye on for to the upside would be twenty four thousand big psychological number And if you go north of twenty four thousand we can then become more confident that the wider upward trend is going to continue And we could be linking testing the may high of twenty four thousand five hundred and sixty five Well, that's all for me this week. Thank you very much