In the perennial struggle between bulls and bears, the former bring home a good result. The stock exchanges in Europe today scored a good shot, but the best one was the Italian stock exchange. It was a session with a bang on the stock exchange and Piazza Affari changes the cards on the table. Let’s analyze with the Bag Projection Experts what has happened in this day.
Today the session was delicate for two reasons. The first because yesterday the European stock exchanges, including Piazza Affari, had experienced a difficult day. The second reason was related to macroeconomic factors. Today the United States released the data on new weekly applications for unemployment benefits. For the market, a falling figure means that the US economy is doing well. But too low a figure could generate fears about the Fed’s monetary policy. Too strong economic growth can push inflation and prompt the US Central Bank to change ultra-accommodative monetary policy. Hypothesis that terrifies operators.
Sitting with a bang on the stock exchange and Piazza Affari changes the cards on the table
So today for these two reasons, there was a danger that the stock markets would experience a new negative session. Thankfully, US jobs data were higher than expected but lower than last week. The result led the US stock exchanges to open higher and favored the increase in the gains of the equity markets of the Old Continent in the last part of the session. The German stock exchange closed up by almost 0.9%, that of Paris up by 1.2%. The London Stock Exchange was less bright and closed with a half percentage point gain.
The Milan stock exchange also closed with a strong rise and made the largest gain among the main lists, reversing the previous result. The Ftse Mib (INDEX: FTSEMIB) closed with an increase of 1.4% at 25,422 points. Thanks to this result, the Milan stock exchange sent a good signal of strength, beyond the closing with a sharp rise. In the article: “It is enough for this to happen in Piazza Affari to trigger a chain reaction”, our analysts hoped for a holding of 25,000 points. They also predicted that a rise in prices above 25,200 points would allow for a rise to 25,400 points.
The hypothesized scenario has occurred and now offers an interesting interpretation. The Milan stock exchange is confirmed as being in an upward trend and attempts to push it down are regularly rejected. For the Ftse Mib 25,000 points remains an important defensive bulwark. As long as prices remain above this level, the trend of Piazza Affari will remain bullish. Trouble will arise if prices drop below this level for several sessions.
This is the multidays analysis and the point of view of the international markets of the ProiezionidiBorsa Research Department.
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