The euphoria over these stocks may have ended after a fairytale 30 day all to the upside

After having broken upwards the strong resistance area identified about a month ago, Credem’s prices started to rise as we have rarely seen on the stock. In fact, the times in which there has been an increase of around 20% in 30 trading sessions in the last 7 years can be counted on the fingers of one hand. However, the euphoria over these stocks may have ended after a fairytale 30 days all to the upside. We will return to the reason for these considerations when we deal with the graphic analysis.

Is it convenient to invest 50,000 euros risk-free in a bank or post office and a duration of 6 or 9 or 12 months?

The accounts for the first nine months of 2022

As reported in a company note, “Credem closed the first nine months of 2022 with a profit of 222.6 million euros, up 23.5% year on year, without considering the accounting contribution of the acquisition of the Cassa di Risparmio di Cento which had positively influenced the result as at 30 September 2021.”

These good results have not, at least for the moment, changed the beliefs of the analysts who have, as reported in specialized magazines, an average target price which expresses an undervaluation of 11%. The dispersion between the various indications is also interesting since it is approximately 6%.

As far as valuation based on market multiples is concerned, the situation is controversial. Depending on the indicator used, in fact, the stock may appear slightly overvalued or undervalued. Since, therefore, there are no strong indications, caution is advised.

Finally, a word on the dividend yield which is above 4.5% and is expected to be stable over the next few years.

The euphoria on these shares could have ended after 30 fairytale days all on the upside: the indications of the graphic analysis

The title believe (MIL:CE) closed the session of 21 November with an increase of 1.23% compared to the previous session at 6.58 euros.

As can be seen from the graph, the quotations reached the maximum bullish extension in the 6.60 euro area (III price objective). There are, therefore, high probabilities that we could see a retracement that could go as far as the 6.22 euro area (the second price target). Below this level, then, we could see a bearish reversal with probable targets in the 5.6 euro area.

If, on the other hand, the stock were to break upwards in the 6.60 euro area, then we could see a bullish acceleration whose objectives will be calculated later.

we believe

We invite you to carefully read the Warnings regarding this article and the author’s responsibilities, which can be consulted HERE”

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