Below is the interview with Alessandro Cocco, CEO of Unicron Associates, to whom we asked some questions about the Ftse Mib index and various blue chips.
The Ftse Mib has decisively moved away from the recent top of the year. Do you see the risk of further declines in the short term?
On November 16, the Ftse Mib had violated the previous highs and had pushed one step away from 28,000 points, from which however it came back.
The index broke down the lows of 10 November at 27,418 points, leaving the door open for further declines towards 26,800 points first and 26,600 points thereafter, with a return to the top of August.
I expect the Ftse Mib to lean on these supports, from which a rebound should start, in the absence of which it will drop again towards 26,200 points.
For now the view is bearish, because the trend has been violated and the Ftse Mib has also violently broken the low of 10 November in the area of 26,400.
Only an immediate return above this last level could we trust in a recovery first towards the top of last Friday in the 27,800 area and then eventually to the highs of the year.
A scenario of this type at the moment seems unlikely to me and I am more inclined to think of a further negative evolution in the short term.
ENI and Saipem were hit by new sales on Friday in the wake of further oil retreat. What can you tell us about these two titles?
ENI broke the support at 12.4 euros and then the following one at 12.2 euros and now there is room to go down further towards 11.8 euros first and later in the direction of 11.6 euros and in the worst case scenario up to 11 euros.
The scenario for ENI, as already mentioned before for the Ftse Mib, is negative, and only a rebound from the aforementioned supports could lead to a recovery of the stock.
With a return above 12.4 euros, ENI will be able to return towards 12.8 euros, but caution is a must because the approach is now negative.
Saipem failed to breach the November 10th high, accelerating downwards and breaking the October 29th lows of € 1.892.
The stock is now pushing towards the lows of 19 July at 1.822 euros, the holding of which will be crucial to favor a return towards 2 euros.
Otherwise, there will be a continuation of the decline that will see Saipem fall towards 1.6 / 1.5 euros.
Enel has returned below 7 euros. Is this downturn a buying opportunity?
Enel is aiming for 6.8 euros, violated which will risk falling to around 6.6 euros.
The holding of 6.8 euros could be exploited for a recovery, but not for a long entry that I would condition if the 7.2 euros were exceeded.
Beyond this level, Enel will first aim for the highs of November 1 at 7.36 euros, with a subsequent projection at 7.7 euros.
Leonardo suffered a severe blow at the end of the week. What is your view on this title?
Leonardo punctured the lows of 29 October at € 6.31 and could target the July bottom at € 6.01.
In my opinion we will have to wait for the prices to reach this threshold to find a fairly clean entry level.
Watch out for the lows of € 6.01, because a break of this level will see Leonardo go down to € 5.5.
Trend-online Deputy Director, born in 1978.
After completing his studies at the Classical High School “Antonio Calamo” of Ostuni I entered the world of economics.
For about twenty years I have been dealing with Stock Exchange and Finance. After having worked as a financial promoter for several years, in 2005 I joined the Trend-online team as an editor, to later become deputy director of the cylinder head. Among other countless activities, I take care of maintaining relationships with all the experts, analysts and traders, consulted daily by Trend-online.
My motto is? “Life is like a mirror, if you look at it smiling it will smile at you”.