Spectacular session for Piazza Affari, as they have not seen for a long time. But all the European stock exchanges have made significant increases. Here is the analysis of the ProiezionidiBorsa Experts to understand what happened today on the Stock Exchange and what consequences may arise for the next sessions.
Because an avalanche of purchases today has overwhelmed Piazza Affari making it explode upwards
The European lists are looking ahead, as if they wanted to put the tough coming months due to the pandemic behind them. The German stock exchange gained 2.5%, the Paris stock exchange 2.4% like that of Madrid, the London stock exchange rose 2.3%.
But the Milanese list was the best. At the end of the session, the main index of Piazza Affari, the Ftse Mib (INDEX:FTSEMIB), closed up 3.2% to close at 18,986 points.
The Milan stock exchange was dragged up by a euphoria coming from overseas. The bets are on Biden’s victory in the presidential election. That’s why an avalanche of purchases today overwhelmed Piazza Affari making it explode upwards.
Suddenly Wall Street decided and picked the horse to bet on. And he has bet on the victory of Trump’s challenger. Let’s hope he’s right. The feeling is that we want to put the bad weather behind us and we want to look forward, when good weather arrives. Which objectively still cannot be seen.
Trend reversal or rebound? Early to tell
An increase of these proportions is also justified by many coverings of those who had bet on the downside. Last week some European indices, such as the German Dax and the Euro Stoxx 50 index, had breached significant price levels.
Evidently, below those levels, many had fallen short. Yesterday’s price reversal prompted many to close short positions and buy back to hedge. And this has pushed the markets.
Among the blue chip stocks, the strong rebound in banking stocks should be highlighted, with Intesa and BPER among the best. But attention goes to Saipem, which for the umpteenth session was the best stock among the large cap stocks.
Now the stock has a resistance in the 1.70 / 1.75 area beyond which prices can go up to 2 euros. It is possible, however, that in the next two sessions Saipem may slightly correct following sales for profit taking. The important thing is that prices do not fall below 1.55 / 1.6 euros. In this case they could go up to 1.40 euros.
Deepening
To know the multidays analysis and the point on international markets of the ProiezionidiBorsa Study Office, click who.
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