Unicredit: decline finished or are there any further falls for the share?
If we go to analyze the Ftse Mib and its components we can only point out that the graphic situation seems to be the same for everyone. After the strong rebound from the March lows, it has reached a nodal point: from these levels either we start definitively on the rise or the risk is to see further falls even below the March lows.
Our forecasts for the world stock exchanges exclude the hypothesis of new lows compared to the month of March at least until July 2021 but this does not mean that the trend can disavow this hypothesis.
What to do from now on and how to behave?
We must go to analyze those levels that if violated could lead to new falls. Today we are going to study the graphic situation of the Unicredit stock (MIL: UCG).
The stock ended the trading day on June 26 at 7.909. Since the beginning of the year it has marked the minimum at 6.012 and the maximum at 14.442.
Unicredit: decline finished or are there any further falls for the share?
What are the conditions from now on that will lead to new rises or falls?
What to monitor?
From a fundamental point of view, we believe that at current levels as in the discounted cash flow method there are levels of overvaluation. The consensus of the analysts (25 reviews) instead calculates a target price at 9.61.
From a graphical point of view, the short-term trend will remain bullish (the long-term one is bearish until it exceeds 11.74 in the monthly closing) until there are weekly closings above 7.542. Below this level, as indicated, the risk of new lows in the year 2020 lower than 6.012 would become very high.
The 7.542 level keeps the bullish structure “drawn” from the March lows intact and this pattern until it is denied week by week, seems to point to 10.37 and then 14.442.
We will proceed in steps.
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