Ftse Mib: bad sign, now what? Watch out for ENI and Stellantis

Below is the interview with Davide Biocchi, trader-Directa SIM, to whom we asked some questions about the Ftse Mib index and some blue chips.

The Ftse Mib is trying to reposition itself above 23,000 points after yesterday’s lunge. What are the expectations in the short term?

I see the future on the Ftse Mib between 23,000 and 25,000 points, so the confirmed break in support is really very dangerous.

With closings below 22,800 points there will undoubtedly be a bad signal, it being understood that the guide remains Wall Street.

Already the S & P500 below 4,100 points is dangerous and even more so below 4,000 points, so maximum attention, because an abandonment of this threshold will be truly dramatic.

The only equity sector that works right now in the United States is that of stocks that pay high dividends, therefore especially the oil & gas sector.

Taking a map of how American stocks are doing, we realize that the only sector bought in the last month was oil & gas.

Also in Piazza Affari there are several important stocks that have yet to pay the dividend, we think of Intesa Sanpaolo or Azimut, but at the moment it seems to me that there are no stocks with charts to bet on except for a very few names.

This is because Europe, in addition to the United States, will have the repercussions of the war and in addition we have the ECB that remains at stake, so the situation of the Old Continent is much more complicated than that of the United States.

In general, we are not seeing panic selling on the markets, but an orderly exit from the market by those who are slowly making the switch from equity to fixed income.

What is taking place is a transfer and personally at this moment I do not see ingredients for a rebound, because it would take a turn for all those elements that will not easily link together if the war does not end.

Are there any titles in Piazza Affari that you would save now?

First of all, I would look at ENI which with closings above 13.8 euros would become interesting and could move upwards.
Keep in mind that the stock has a chart made up of two negative decreasing highs.

The most beautiful graph is that of Tenaris which, however, I would buy above 15.3 euros, therefore on a new relative maximum.

What can you tell us about Leonardo who is struggling to keep above 10 euros?

Leonardo could be interesting above € 10.3 because it would give a good show of strength.

To find an upward target one would have to go back several years in time, but an intermediate target could be 10.8 euros, while the strongest obstacle is at 11.7 euros, but Leonardo will have to find great strength to be able to push himself. until there.

Do you think Stellantis below 13 euros is attractive?

In an Italian market that saw sales drop by 33% in April, Stellantis did even worse with a decline of 41%.

The stock reached 12 euros, a very important level, and rebounded from there, but personally I can’t buy Stellantis which comes from a descending trend.

In the 12 euro area, the stock has started a recovery after finding support, but has not yet sent a signal of strength that could reach above 13.5 euro.