Below is the interview with Alessandro Cocco, a Tag Group trader, to whom we asked some questions on the Ftse Mib index and on various blue chips.
The Ftse Mib has started a recovery from the lows of the previous sessions. Will the rebound continue or do you see the risk of returns to the downside?
The Ftse Mib exceeded 19,780 points, which is the highs of last Friday’s session that we had indicated as the first resistance to be violated.
Now the index, after the minimum area of 19,200, could continue to catch up and move towards 20,400 / 20,500 points, thus returning to the highs of 12 and 13 August last.
My idea is that the Ftse Mib can bounce again, but it is good to carefully monitor the first major support at 20,364 points, corresponding to the intraday lows of two days ago.
Even more relevant will be the holding of the lows on Tuesday in the 19,200 area, broken by which the Ftse Mib will drop to 19,000 / 18,950 points first and then to 18,543 points which at the moment are quite far away.
It will be important in the short term that the support area of 19,000 / 18,950 is defended because if so we will have hopes of seeing the Ftse Mib return to the 20,400 / 20,500 area.
My view on Piazza Affari is constructive and I expect a continuation of the recovery started from the lows of the last sessions.
Beware, however, of the possible collapse of the 19.200 / 19.00 area, under which it will be good to pull the oars in the boat because the Ftse Mib will risk a deeper descent with projections even up to 18,300 points in the worst case scenario.
Banco BPM today gave way to some profit taking after yesterday’s rally, while Bper Banca defended itself. What is your view on these two titles?
Banco BPM yesterday reached a top at € 1.5325, a level very close to the highs of July 21 at € 1.566.
The stock took our breath away today and now attention will turn to the support at 1.4515 euros, a threshold that was previously a resistance that kept prices down especially in August, only to be breached yesterday.
With the holding of the support at 1.4515 euros, Banco BPM will be able to try to break the highs of 21 July at 1.566 euros, beyond which it will be possible to think of a further extension.
Below € 1.4515, the stock will drop to € 1.375, the break of which will make us lose hope of new rises, with the risk of a decline towards the € 1.25 area.
Bper Banca is set up slightly better than Banco BPM on a technical level, although it is true that it has lost a lot.
The stock hit a low two days ago in the € 2.09 area, below which we find the bottom of August 4 at € 2.02.
Bper Banca is traveling around a support area between the lows of 4 August and the 2.14 euro threshold which kept prices above in June, only to be breached in June.
As long as the stock remains above this threshold, it will be able to aim for 2.4 euros, while below 2.02 B for Banca it will fall towards the lows in May in the 1.8 euros area.
Saipem was the worst blue chip today, while ENI held up well. What strategies can you suggest for both of us?
ENI created a small congestion between 7.7 and 7.54 euros, even if on 8 September it made a minimum of 7.45 euros.
The real resistance to be breached is now at 7.8 euros in order to access the upper floors and in particular rise to 8.2 euros before and then to 8.4 euros, the highs of 12 August.
Below the lows of € 7.45, ENI will look to the bottom of August 3 at € 7.343 and this threshold will have to be defended, on pain of a drop down to € 6.5.
Saipem attempted to recover at the beginning of August, to then enter a bearish trend, however, with very low volatility.
The stock recently experienced about 10 negative sessions and today reached new lows of the year.
Personally, I would evaluate the first purchases on Saipem in the 1.75 euro area, beyond which it will return above the lows of 3 August and this would be a first interesting sign.
Telecom Italia lost ground today after the non-violation of the 0.4 euro quota. Is there a risk of new drops?
Telecom Italia today broke the three-day lows at € 0.381 and now finds another support at € 0.37 first and then at € 0.36.
If these supports will hold up they will offer the possibility of a rebound, otherwise the stock will fall again towards 0.35 euros, where it will come close to the trendline that caused prices to rebound at the beginning of August and from which the stock had started up again in March. .
I would evaluate new longs on Telecom Italia at 0.39 euros, aiming for a target close to 0.42 euros, broken which we will see what will be the other rising high that will be marked.
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