The choice of a share security is a very complex exercise that requires an accurate study of the price chart, the risk associated with the investment and also the possibility that the future is not bright with consequent effects on the trend on the stock market. From this point of view it is much easier to invest in instruments that are correlated to the performance of an index. In this way we know that the risk associated with the failure of the underlying instrument is non-existent. Furthermore, we know that in the long run, the likelihood of an index yielding a positive return is very high. For example, the probability that the Dow Jones has a positive return after 10 years is 88%. After 15 years, however, this probability rises to 95%.
In the case of titles, however, the result depends a lot on the one chosen. For example, over a 10-year term, the probability that an investment in ENI will have a positive return is 88%, which drops to 48% in the case of Intesa Sanpaolo to reach 15% of Telecom Italia.
That’s why choosing the best stocks to buy isn’t easy at all.
Today we are dealing with ITWay, a stock that from a graphic point of view could offer, without prejudice to the above, a good opportunity for an upside reversal.
How to choose the best stocks to buy
The title ITWay (MIL: ITW) closed the session on 19 September at € 1.60, down by € 0.74% compared to the previous session.
The current trend on the stock is bearish and has already reached its first price target in the € 1.666 area. This level is very important as in previous sessions it has offered valuable support to counter the push from the bears. Now, however, it has been broken down and this could cause a bearish acceleration towards the next target in the 1.406 euro area. The maximum bearish extension, on the other hand, could go to the 1.186 euro area.
Only an immediate recovery of the 1.626 euro area could lead to an immediate bullish reversal.
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