Ftse Mib: it’s time for a reversal. Telecom and FCA to buy?

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 index resumed its earnings path after yesterday’s short break. Are there the conditions to go up again in the short term?

In yesterday’s session, the Ftse Mib started with a small bullish gap, but then it went back down and closed in red.

Today the index has recovered ground, but it must be said that these last two sessions are of little significance given the scarcity of trading volumes.

It must be said that the Ftse Mib has almost reached the area of ​​22,500 and has entered overbought since the beginning of the second decade of November, so a short retracement is also possible.

Since the index went overbought it has continued to rise but with lower volumes than the previous ones.

So now I expect a decline in the Ftse Mib, signaling a first support on the highs of 21 July in the area of ​​21.150.

It is true that at this stage our index appears to be a bit disconnected from the others, but if now the other lists will correct a little or will experience a stalemate, then the Ftse Mib will come back.

If, on the other hand, the index were to breach the upward area of ​​22,500, then it will continue to rise towards 23,200 points, and then lengthen to 24,120 points, a resistance that had kept prices in congestion between December and January.

Banco BPM today is more cautious than Bper Banca. What is your view on these two titles?

Banco BPM rose well and hit highs of € 1.9685 before retracing a bit.
Let us now take the price range between this top and the lows of November 23 at 1.836 euros as a reference.

Below this last level, Banco BPM could fall as low as € 1.6995, a resistance that kept prices below in mid-October.

On the contrary, in the event of a break to the upside of € 1.9685, a good target would be € 2.125, with the possibility of further extensions.

Bper Banca also very well, starting to close November with a very positive balance.

On the upside, the focus is now on yesterday’s highs at € 1.528, beyond which it can extend the pace towards the top of November 23 at € 1.5745.

Beyond this threshold, Bper Banca will find an obstacle at 1.625 euros before and then at 1.8125 euros, the highest on 21 July.

On the downside, however, below the support at 1.471 euros, the stock will fall towards the lows of August 4 at 1.375 euros first and then in the direction of 1.25 and 1.1875 euros.

Telecom Italia today exceeded the 0.4 euro mark. Is the title interesting again?

In my opinion, Telecom Italia was interesting up to now, since it has recovered more than 40% from its historical lows in the area of ​​€ 0.28, so it has come a long way.

Now the stock will find its highs of 28 August at € 0.42, but we must be careful because it is already overbought.

If the 0.42 euro area is exceeded, Telecom Italia will be able to extend the increase to 0.46 euro, but it will not be easy to reach this level.

As supports, I first point out € 0.3892, a very beaten price threshold between the end of August and the beginning of September and even earlier it was touched around mid-July.

Below € 0.3892, Telecom Italia will fall towards € 0.36 first and then up to the € 0.34 area, signaling that the stock could rebound from here.

FCA is still lengthening its pace beyond 13 euros. Where will this rise lead?

FCA was already performing well before the Ftse Mib gave birth to this last bullish leg which was exploited to make new progress.

The stock went above € 12.77 / 13, an important resistance from May to November 2019.

An important level has therefore been violated and it cannot be ruled out that FCA will remain above this and continue to stretch.

With confirmations above 13.22 euros, FCA will aim at 14 euros, while below 12.7 / 12.6 euros the stock will retrace towards 12 euros first and in the direction of 11.5 euros later, which is reached should see a rebound.

Enel is a stone’s throw from all time highs. Can he go further or will he come back from here?

For Enel, I would like to point out the important support of € 8.2, which will drop to € 8 first and € 7.8 later.

These are rather close supports that could contain a possible descent, with the title that above yesterday’s top at € 8.561 will be able to stretch towards levels never reached before, with a potential target in the € 9 area.

–