The stock exchange awaits the turning point, the bankers ready to jump upwards. But on one condition

For the financial markets, it has been a week full of important events. It has been a historic week for the price of Petroleum, which has fallen to its lowest for 40 years. The WTI contract collapsed below the $ 7 a barrel threshold. It was the week of European Council of the 27 Heads of State and Government on aid for economic recovery in the EU. Finally, it was the agency’s rating week Standard & Poor’s on Italy’s debt.

And what next week will it be?

The stock exchange awaits the turning point, the bankers ready to jump upwards. But on one condition

We start from the judgment of Standard & Poor’s because it could be the key to a positive week for Piazza Affari, which could do better than the other European stock exchanges. The American agency left the national rating unchanged and confirmed it to BBB. A substantial promotion for Italy that could already benefit from Monday, if it is spread between returns of BTP and the Bund went down. The drop would be reflected positively on the quotations of Italian banks, stuffed with government bonds, in particular Unicredit. If the spread falls below 200 points this would be the week of the banks’ recovery.

The key levels to monitor

Since March 25, the prices of the Italian stock exchange have moved sideways, trapped within a very specific range. The upper level passes through area 17.800 points while the lower band is at an altitude of 16.400 points. As long as the prices don’t come out of this cage, there will be no decided movement of the index Ftse Mib (INDEX-FTSE).

An upward breach will push prices towards the 21400 point target. In fact, at this level it will fill the gap that opened in the 6 March session. On the contrary, a drop in prices under the support of 16.400 points will have 15.750 points as its first objective. At that price level, the gap opened with the session of March 24 would close. But it is not said that prices will stop, indeed. It is likely that they will return to fall to the 14,000 area, the minimum of the strong sell off that broke out in late February due to a coronavirus emergency.

Always keep an eye on Wall Street

The stock exchange awaits the turning point, the bankers ready to jump upwards. But on one condition. Piazza Affari moves in a financial context that cannot be ignored. Regardless of internal factors, price trends are affected by the climate of other exchanges, in particular the US one. Without a good setting on Wall Street, any extensions of our price list will only be extemporaneous, short rebounds.