The Italian stock market experienced a recovery session on the eve of the Fed’s intervention on interest rates. However, the FtseMIB index of the 40 most capitalized stocks maintained the consecutive sequence of decreasing highs and lows that continues from the relative peak of 13 September, and must still be considered at risk of a recovery in the short term.
Significant changes in this sense could come only from the consolidated exceeding of at least 22500/550 quota. Today we intend to briefly examine the scenario on two of the stocks that have generated new directional technical signals, Moncler and CHN Industrial.
CHN, Evident Trend Fatigue
CHN Industrial closed the session on Wednesday 21 September at 12.18, with a gain of 1.58% on a daily basis. Since last August 3rd, the stock has been substantially stabilizing (= repeated trend changes) above the “old” supports at 11.80 and 11.50.
However, starting from the highs of 25 August, touched above 13.00, some have become increasingly evident signs of fatigue from the uptrend, which had originated since early July, just under 10.60. In fact, since the end of August, consecutive decreasing highs and lows have been forming which have been able to generate new resistances at 12.22 / 12.26 and 12.45 / 12.50.
We expect these resistances to be places of probable retreat in the event of further recoveries in the week. The projections are bearish through 11.50 and 10.80 / 81. The bearish scenario would be canceled out by a daily close above 12.50.
Also Moncler had a positive session on Wednesday, closing at € 45.00 with a gain of + 1.58%. In this case, however, we are faced with a different scenario. The stock has in fact touched two very close lows on 8 and 16 September, respectively at 42.45 and 42.59, which constitute a possible support base for the breaking of the intermediate resistance at 46.20 / 46.45.CopyAMP code.
It is possible that between the main support and the intermediate resistance mentioned, repeated trend changes may temporarily develop in preparation for the bullish break (= accumulation phase). However, we believe that there are already active bullish projections up to 48.48 / 48.50 (target).
A further, closer intermediate support level is also visible at 43.95 / 44.15. The technical signal is long on rapprochements at least to the first support, in any case from prices not higher than 44.75. The bullish signal is closely linked to the holding of the main supportand would be canceled by the simple violation of altitude 42.45, without waiting for any confirmation.