This unique and almost unrepeatable factor can push the stock market towards new records

This unique and almost unrepeatable factor can push the stock market towards new records
This unique and almost unrepeatable factor can push the stock market towards new records

On Friday, the Milan Stock Exchange closed the month of October. The month of November is inaugurated with today. Many new factors are changing the economic scenario and therefore also that of the stock markets. Some factors lead to optimism and other elements lead to prudence. Let’s see what these factors are and what will happen to the Milan Stock Exchange this week in November.

In Piazza Affari some signs of fatigue

The data is clear, if September was negative for our list, October was very positive. The major index of Piazza Affari opened the month at 25,366 points and closed at 26,870 points, setting a new annual record and touching the highest value of the last 13 years, at 27,049 points. The regret is that the Ftse Mib was unable to close the month above 27,000 points. Several times in the last week, prices have exceeded the fateful threshold but then have always closed below this level. Opening the month starting from a quota higher than 27,000 points would have given more momentum to our stock market for the month of November.

Despite the sharp rise in the last three weeks, in the last 4 sessions the Milan stock exchange has shown signs of fatigue. This weakness can be clearly seen by observing the graphical trend of the last sessions. From 26 to 29 October the Ftse Mib achieved 4 decreasing maximums and 4 decreasing minimums. This clearly indicates that the Milan Stock Exchange has been going through a correction phase for some sessions. It is probably just an adjustment pending the conditions for a new upward leap. Let’s see what these conditions are.

This unique and almost unrepeatable factor can push the stock market towards new records

The definitive exceeding of 27,000 points would pave the way towards 28,000 points and this week this event could happen. The premises are there. On Friday, Istat certified that our GDP in the third quarter rose by 2.6%. At the end of the year, our growth could stand at 6% and possibly exceed this figure. Italy is in full economic boom and these data could push investors to focus on our market. This unique and almost unrepeatable factor can push the stock market towards new records.

Unfortunately, inflation could ruin the party. The sharp rise in prices could halt growth in Europe and push the ECB to hike interest rates early. The European Central Bank made a decision on the cost of money on Thursday. In the press conference, the president clearly expressed the position of the Central Bank. We talk about it in this article: “Dramatic collapse in Piazza Affari of two stocks while alarming a figure that rises”.

For the Ftse Mib (INDEX: FTSEMIB) this week the levels to consider are 27,050 points up and 26,600 points down. If the Ftse Mib exceeds 27,050 points, the way will open for a quick achievement of 28,000 points. Prices can reach this target as early as this week if the breach occurs today or tomorrow at the latest. If prices were to close below 26,600 points, the current picture would weaken further.

Deepening
The point about the markets

(We remind you to carefully read the warnings regarding this article, which can be consulted WHO”)

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