Ftse Mib: chasm below the lows. Better Unicredit or Intesa?

Below is the interview with Davide Biocchi, professional trader, to whom we asked some questions about currencies, about some commodities and about the expected scenarios for the stock exchanges.

The Ftse Mib reacted after updating the lows of the year. Is it a double low or is it too early to tell?

Having said that graphically one could also think of a double bottom, I personally am not able to answer the question about it.

Double lows can only be identified in retrospect, but if I have to judge from the economic situation, if there are any chances that the markets will find here some ideas to make a turnaround, honestly it is difficult for me to think so.

This is because I believe that with respect to a possible recession, we would only be at the beginning, since we do not know the characteristics of the same.

We still have a scenario of earnings estimates that must discount the recession component and now in my opinion the markets are already pricing in the fact that there will be a recession and we will have to see what size it will have and what impact it will have on companies’ profits.

If the impact is marginal then one day we will talk about double bottoms, but if it is significant, I think we will see lower levels.

For the Ftse Mib the area of ​​21,000 is a fundamental support, given that below this threshold there is the abyss.

Below 21,000 points, the first real support is around 17,500 points, even if there is a whole congestion area between 20,300 and 18,200, in which the Ftse Mib will get bogged down for sure if it gets there.

In case of recovery, the area of ​​22,000 will be key: if you look at the chart you can see that the index in the last period is not lateral, but lateral-bearish.

Currently, the Ftse Mib has a static threshold of 22,000 points which would also correspond to the possibility of violating this channel on the upside.

Do you think that banks offer buying opportunities at current levels?

If you look at it graphically, you notice that bankers have little appeal, starting with Intesa Sanpaolo, for example, which leans towards the bottom.

It is dangerous to go down further because the 1.7 euro area is a hard support, the break of which will open the door to new falls.

For Unicredit we discussed recently how good it was above 10.5 euros, but now we find it in the 9 euros area, with strong support at 8 euros.

Surely a scenario of rising rates will be favorable for banks, but the latter suffer not a little in the event of a recession.

What are the stocks that currently have momentum?

First of all, I would like to point out two pharmaceutical stocks, Diasorin and Recordati, but Amplifon, which is today’s best, also has momentum, to which I also add Campari.

In my opinion, these 4 stocks have bullish momentum and always among the blue chips I point out a structurally upward one, namely Leonardo.

And if one is a lover of securities to be collected with a spoon, but from an investor’s point of view, I would like to point out Generali who tried to react from the support at 15.25 euros, only to then go back below today.

Looking at the Generali chart from April onwards, one realizes that it has lost the appeal for which it went up before and slowly went down without any hesitation.

The title is back on interesting levels and now I would do a little thought in a long-term perspective.

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Ftse Mib: chasm below the lows. Better Unicredit or Intesa?

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