Piazza Affari ends the session with a small loss. Was today’s slight drop due to a hiccup, or should we worry? Here is the analysis of the day of the ProiezionidiBorsa Studies Office.
Start of week on the wrong foot. Do you need to worry?
The week of Piazza Affari begins with a decline. The Ftse Mib index (INDEX:FTSEMIB), closed down by 0.02% to 21,701 points. But beyond the numbers, objective, but sometimes deceptive, it is useful to understand what causes them and what consequences they can bring.
It is necessary to interpret today’s session to understand if the 0.02% drop is marginal or if it hides something else. So let’s analyze in a nutshell what happened today on the Milan Stock Exchange.
Prices started very strong, climbing to gain 1%. After less than an hour of trading they found themselves close to the psychological threshold of 22 thousand points. At that point they turned downwards and followed a downward trend throughout the session. At the end of the day they closed on the same level as on Friday.
An important aspect happened today in Piazza Affari and which must be taken into account
A close at the same level on Friday can be interpreted as a stalemate. The stock market has neither gained nor lost today. When prices reached 22 thousand points, they reversed the trend and fell throughout the session.
It can be assumed that this may have been a daily correction. Those who had open positions on Thursday or Friday sold and monetized their gains when prices hit 22,000 points. Or it could also be a deeper correction and also affect the next sessions.
However, it should be emphasized that an important aspect happened today in Piazza Affari and which must be taken into account. A correction has occurred, that is a downward movement of prices limited in space and time.
A further drop in prices will remain corrected if it lasts no more than 2/3 sessions and if it stops its fall above 21 thousand points. Longer and deeper movements would cast doubt on the ongoing bullish phase.
Deepening
This the multidays analysis and the analysis of international markets by the ProiezionidiBorsa Research Department.
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