Date: 13 Mar 2020
Share markets are rebounding slightly on Friday in an attempt of a price stabilization following the worst sell-off since the 1987 crisis. This bullish opening on EU shares has been boosted by the decision from Spanish and Italian regulators to ban short-selling on certain stocks, with these two benchmarks currently the best performers in the eurozone. However, the uncertainty persists on risky assets as coronavirus cases and the associated death toll continues to soar. The virus is spreading fear and panic further across the world and putting pressure on entire industries. Covid-19 has already slowed several businesses down and investors remain worried stimulus by central banks won’t be enough to offset the negative impacts across the world. Markets are now entering an irrational-like state with prices heading for their worst week since 2008. Most stock traders now have one major question in mind: where’s the bottom? All European indices are edging higher so far with all sectors up. The FTSE-MIB from Milan, stabilized near the 14,830pts zone and is now trading above 15,500pts in a corrective move. However, the road to recovery will be a long one as it faces several strong resistance levels and is showing no sign currently of any trend reversal. If prices were to break through 14,830pts, which is the lowest level since 2016, then the next support is down at 14,300pts and then 12,650pts.
Pierre Veyret– Technical analyst, ActivTrades
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