Ftse Mib: harder correction? ENI, Saipem and Bper, what to do?

Below is the interview with Pietro Paciello, CEO and Chief Analyst of Pro Markets Sagl, Asset Management Company, to whom we asked some questions on the situation in Piazza Affari and on the strategies to follow for various stocks.

To follow Pietro Paciello, author of the book Trading Plan, click here.

The Ftse Mib is back to putting pressure on the 27,500 area after failing to extend in recent days. Technical evidence of a wider correction?

I think we have entered a fairly evident corrective dynamic, so my positioning on the markets is bearish, although not too violently.

As regards the Ftse Mib in particular, it seems to me that Friday is a short breakout session, with the first target in the 27,250 area and the next target in the 27,000 area.

In the event of a violation of this psychological threshold as well, I would not rule out a descent of at least 1,000 points lower.
For now it is a hint of short, but I believe there are grounds for seeing a broader correction in the Ftse Mib.

In light of recent oil movements, what indications can you provide us for two oil stocks such as ENI and Saipem?

The leading sectors of this period also see the oil industry among the protagonists.

Oil remained one of the few strategic assets still with a clear bullish bias and this allowed the sector stocks to be well correlated and in excellent health.

In the last few hours I see a near resistance for oil that makes me think of a mature cycle and that should be reflected in fairly substantial profit-taking on the sector’s stocks.

ENI would have a bullish exhaustion target in the 13.65 euro zone which I find it hard to think will be reached in the next few days.

If the stock were to reach the level of 12.8 euros, it would present us with a fairly violent corrective dynamic towards the 12 euro area.

For the moment I do not have a short position on ENI, but if it were to make a daily close below the 12.8 euro area, I would certainly try the bearish variable.

Saipem’s chart is much less well structured than ENI’s and what struck me in particular is that three days ago it drew a perfect relative double top in the € 2.0175 zone.

For me this represents a sort of short-term target price for Saipem, on which I have already entered a bearish position at current values.

I expect a fairly consistent deceleration, considering that the stock is in bearish divergence.
For Saipem, the first short target is 1.875 / 1.87, with a stop above 2.02 / 2.025 euros.

In your opinion, do Banco BPM and Bper Banca offer interesting insights into current values? What strategies can you suggest for both of us?

The risk that has been unleashed in recent days has certainly contributed to supporting the Ftse Mib, full of securities from the financial sector.

Even on Banco BPM, however, I am beginning to see signs of a potential deceleration.

It must be said that the stock did not complete the bullish target for a long time, but it seems to me that a dynamic of deceleration has also started on the banks.

In particular, Banco BPM broke the € 2.85 level, a short-term dynamic support, and theoretically it should project towards the € 2.7 zone, with a fairly interesting support at € 2.6.

Banco Bpm is also characterized by a perfect double top, so the negation of the bearish hypothesis just described would be bearable in terms of stops.

This is because above € 2.93 I would evaluate the corrective hypothesis as incorrect, closing the short position.

A slightly different technical situation is that of Bper Banca which has grown well in recent days.

I do not have a short signal on the stock yet, so in this case I will limit myself to indicating very clear and evident graphic targets for those wishing to continue trading.

For the bulls we have a target in the € 2.065 zone, while for the bears I see a support area at € 1.85 first and then at € 1.7.

STM leaves another very volatile week behind. What can you tell us about this title?

STM has a volatile week because it is a perfect clone of the Nasdaq and the minimum recorded in recent days in the 42 euro area is very significant.

By this I mean that the possible opening of short positions would subordinate it to the violation of the 42 euro area, under which STM could accelerate towards the 39 euro area.

At present I would not buy STM because I see the Nasdaq quite weak-volatile.

Trend-online Deputy Director, born in 1978.
After completing his studies at the Classical High School “Antonio Calamo” of Ostuni I entered the world of economics.
For about twenty years I have been dealing with Stock Exchange and Finance. After having worked as a financial promoter for several years, in 2005 I joined the Trend-online team as an editor, to later become deputy director of the cylinder head. Among other countless activities, I take care of maintaining relationships with all the experts, analysts and traders, consulted daily by Trend-online.

My motto is? “Life is like a mirror, if you look at it smiling it will smile at you”.

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