The positive streak of the Milan Stock Exchange stops. After 8 consecutive sessions on the rise, Piazza Affari today marked a setback. If so you can call it a day in which the index closes down by a fraction of a point. At the end of the session, the main index, the Ftse Mib, closed down by 0.06% at 25,809 points. The change compared to yesterday’s close is practically nil.
Reflecting on the result, it may seem that little or nothing has happened today on the Milan Stock Exchange. But the numbers often deceive and hide much more complex realities. Those who have a bit of experience have understood that today sales for very short-term traders have arrived in Milan.
After eight bullish sessions, those who were earning since last week took the opportunity to monetize their earnings. This hypothesis had already been advanced by our Analysts in yesterday’s article. In the analysis (this is the link to the article) it was indicated that once the quota of 26,000 points was reached, prices could also suffer a decrease. So it happened.
The stock exchanges in Europe closed flat weighted by a scenario that surprisingly worries operators for this incredible reason
Today was a typical profit taking day. The Ftse Mib (INDEX:FTSEMIB) at the start it immediately jumped up, reaching a maximum of 25,930 points after less than half an hour of trading. Then suddenly the prices reversed direction.
It is clear that the approaching resistance of 26,000 points has prompted many to sell. The index fell to around 12.30, when suddenly the selling stopped. At that point, the Ftse Mib leaned on the support of 25,700 points and rebounded. In the afternoon some purchases returned which allowed the stock exchange to close at the level of the previous session.
In Europe it hasn’t been much better. The German stock market closed down 0.2%, Paris gained 0.1%, London rose 0.2%. But there is no uncertainty in the markets, there is only caution.
Almost a phase of stagnation in which investors move with caution. There is a lack of real ideas on the market. It seems that the negative side of the economic recovery underway in Europe and the USA is to be grasped. That is, with strong growth, a rise in inflation and the end of the ultra-expansive economic policy of the central banks will be inevitable.
At this moment these two hypotheses are negatively experienced by the operators. For this reason, the stock exchanges in Europe closed flat weighted by a scenario that surprisingly worries operators for this incredible reason.
Deepening
This the multidays analysis and the analysis of international markets by the ProiezionidiBorsa Research Department.
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(We remind you to carefully read the warnings regarding this article, which can be consulted who”)
