Below is the interview with Sante Pellegrino, an independent trader, to whom we asked some questions about the current situation of the markets and in particular of Piazza Affari.
The Ftse Mib has again updated the highs of the year, only to move at a crawl pace. What are the possible scenarios now?
The Ftse Mib marks new highs of the year and returns above the pre-Covid peaks, ie the levels left behind in February 2020. The index almost touched the cyclical resistance at 25,960 points, creating a doji candle.
We have a quite interesting pattern because the Ftse Mib had to reach 25,960 points, given the previous pattern and now the question is: will we continue to rise thanks to the overbought and therefore the Ftse Mib will reach 26,480 points?
It is not easy to answer this question, considering that most of the securities with certain yields are on the highs of the period and some have not even reached the pre-Covid tops.
A response will come only after any bullish pattern above the 26,000-point resistance of Ftse Mib.
Alternatively, the index should reverse as soon as it leaves the first dynamic support in the 25,150 area, with subsequent projections at 24,800 and 24,350 points.
We are heavily overbought, remembering that we were expecting a distribution maximum for the Ftse Mib between April and May and with last month we actually went further.
We advise you to pay close attention, also in view of tomorrow’s ECB appointment which has to deal with the inflation that is advancing in the United States.
In summary, for the Ftse Mib I point out that for now some very important tops have been touched, so it is good to be very careful, also because the securities with certain yields have not updated the maximums, as in the case of ENI which is still below the levels highest in 2020.
What can you tell us about the recent performance of the Dax and the S & P500? What are your short-term expectations?
The Dax is at higher levels than the highs of April, but there are no bullish patterns that indicate the possibility of a stretch towards 15,800 points first and 16,130 points thereafter.
Also for the Dax it is good to pay attention, especially in the case of abandonment of area 15,300, below which it could go down to area 15,000.
The S & P500 just yesterday approached the all-time highs without being able to go further.
The index is not overbought, but if there are no bullish patterns it is unlikely that there will be an extension towards 4,280 and 4,340 points.
If this does not happen, the S & P500 could experience a weakening phase, with possible drops towards 4,145 points.
Are Banco BPM and Bper Banca interesting at current price levels?
Banco BPM has given rise to an excellent increase, after the confirmation of some rumors relating to the restructuring of NPL loans.
The stock touched a cyclical resistance at € 3.08 to then create a reversal pattern and we are now on the support at € 3.014.
Below this threshold, Banco BPM will drop to € 2.89 first and € 2.79 thereafter.
For Bper Banca, resistance is confirmed at € 2.055 and only above € 2.175 will it rise towards € 2.24.
However, the stock could break down the support at 2 euros, and then move back towards 1.91 and 1.85 euros.
Telecom Italia is trying to extend the pace above the 0.45 euro level: does it still see upside margins?
Telecom Italia is grappling with the third cyclical resistance at € 0.46, after which it could rise to € 0.48.
Only a return below the support at € 0.448 will make the stock weaker, which will have to deal with the double support, static and dynamic, at € 0.438, lost which will look at € 0.42.
Stellantis and CNH Industrial hit new all-time highs: what strategies can you suggest for both?
Excellent bullish momentum for CNhH Industrial, with the overcoming of the two cyclical resistances at 14.7 and 14.95 euros.
If the bullish pattern is confirmed, the stock will now point to € 15.4, while a return below the support of € 14.55 will create sideways or trigger profit taking, with the possible landing of CNH Industrial in the € 14 area.
Stellantis like CNH Industrial presents a nice bullish pattern that should push it up to € 17.88.
The only reason to go back down will be the descent below the dynamic support at 16.68 euros, with drops of up to 15.95 euros.
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”.