 Hello and welcome to the CFC Markets chart of the week video with myself, David Madden, Mark Grandlust here at CFC Markets. Today's day is Thursday, the 21st of December and the time has just gone half past 12 UK time. And today's chart of the week is going to be the Mabe, the Italian market, or as we call it here, the Italy 40. And the question I have for this video is, is the Italian market, the Italy 40 Mabe, about to go through a head and shoulders top reversal pattern. Now before we go into the further details of actually looking at the Italy 40 chart, let's take a quick look at what exactly a head and shoulders top reversal pattern is. So for a head and shoulders top reversal pattern to be complete, this is the ingredients you need for that chart, for the formation to play out. So what you have initially is a strong trend before the reversal itself. In this case, it's an upward trend. Notice how the market pushes on here to a higher high, repels back to a reaction low, pushes on to an even higher high, returns to the reaction low, not too dissimilar to the previous reaction low, a draw line between those two lines, a few points called the neckline. The market pushes higher yet again. It fails to take out the previous high, but the right becomes the right shoulder, and the high on the left becomes the left shoulder, hence the name head and shoulders reversal. After the right shoulder is created, the market breaks out of the neckline. It is the head and shoulders reversal top pattern onto the breaks below the neckline. The break of the neckline is crucial for the formation of the completion of the pattern. The market moves south of the neckline, not always, but it usually returns to the neckline, which could then act as a point of resistance for the next move south again. And determining price targets for this particular pattern, you take the gap between the head and the neckline, and you then project that down the way, south to south, from the break of the neckline and same number of points south to southwards. So taking a look at the 40th and 50th, we can see it's had a strong upward trend throughout the summer months. It pushed higher here, creating a higher high in October, returned to a reaction low here, pushed down to create an even higher high in November, returned back to a reaction low, not to December from the previous low of October, pushed higher again in December, but the December high failed to take out the November high, and notice how the December high is above the same height as the height that was created in early October. Now we're pushing back down to the reaction lows of the interoperative 22,000 mark, which is in which coincides with the interoperative low of October and also coincides with the low from November. So if you do have a decisive break south of the 22,000, this could be the beginning of a head and shoulders top reversal pattern only in the 40. Like I said, it's common enough for the market, once it breaks below the neckline, but third to the neckline are there, thereabouts for another move south again. So keep in mind, the breaking of the 22,000 price mark is crucial, and even if you don't get it on back, if you don't enter the trade around there, you could potentially see a bounce back 22,000 before heading south out yet again, potentially. During the price action, or during the price targets, the gap between the high here in every November down to the neckline is about 1,100 points. And see if the neckline is around 22,000 mark, if you've been looking back down south of 21,000. But as I mentioned, you wouldn't see a decisive break of the neckline, around the 22,000 area first and foremost. If the market retains above the 22,000 area, which has quite a deep support over the last few months, the first level to keep an eye out for movement to the upside will be the 50 day moving average, which comes to play in on the 22,465 mark. We can see there's previous experience acting at resistance in November and December. North of that, the high from December could potentially act as resistance in around 22,800 mark. And if you take off that level, then of course you'd be looking at towards 23,000. Thank you for watching this video. That's all from us here at Sea of the Markets in terms of the chart of the week videos for 2017. I wish you a happy Christmas and a happy new year, and I hope to speak to you in 2018. Thank you very much.