News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View more
Real Time News
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 93.70%, while traders in France 40 are at opposite extremes with 79.47%. See the summary chart below and full details and charts on DailyFX:
  • The primary point of worry for the FOMC is labor and tomorrow brings the July NFP report out of the United States. Get your market update from @JStanleyFX here:
  • Commodities Update: As of 16:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 1.01% Gold: -0.32% Silver: -0.47% View the performance of all markets via
  • Forex Update: As of 16:00, these are your best and worst performers based on the London trading schedule: 🇨🇦CAD: 0.39% 🇦🇺AUD: 0.38% 🇬🇧GBP: 0.29% 🇪🇺EUR: 0.03% 🇨🇭CHF: 0.00% 🇯🇵JPY: -0.22% View the performance of all markets via
  • US Dollar Pre-NFP Price Action Setups: EUR/USD, GBP/USD, USD/CAD
  • Indices Update: As of 16:00, these are your best and worst performers based on the London trading schedule: Wall Street: 0.55% US 500: 0.44% FTSE 100: 0.03% Germany 30: 0.01% France 40: -0.05% View the performance of all markets via
  • Heads Up:🇷🇺 Inflation Rate YoY (JUL) due at 16:00 GMT (15min) Expected: 6.6% Previous: 6.5%
  • The price of crude oil is generally sensitive to rising tensions in the Middle East and might have been expected to have strengthened on the current hostilities in the region.Get your #crude oil market update from @MartinSEssex here:
  • Ascending wedge, price support in view. Quantitative evidence is supportive of bullish view. Get your market update from @PaulRobinsonFX here:
  • fresh all time highs for the Nasdaq 100 $NQ
FTSE MIB Forecast: Further Growth Potential for Undervalued Stocks

FTSE MIB Forecast: Further Growth Potential for Undervalued Stocks

Daniela Sabin Hathorn, Analyst

Key Talking Points:

  • Global stocks push higher on Moderna Monday
  • Rotation into cyclical and oversold stocks continues
  • Italy offers great growth potential but coronavirus cases continue to surge

In a “dèjá vu” of last week, we rise this morning with an equity market that is feeling slightly hungover after two of the three main US indices reached an all-time high last night. Although not necessarily needed, given the direction the market was heading in, another round of positive vaccine news was the catalyst for yesterday’s gains, despite the reaction in the market being slightly subdued compared to seven days prior.

Moderna Monday, as it is being called, lacked the surprise factor that Pfizer Monday had, and in a truly capitalist world, rewards are given to those who accomplish innovation, with residual rewards for those who come after. Diving deeper, we can see an increase in interest for cheap and highly leveraged stocks, which is the opposite of the trend seen in most of 2020, suggesting that there is a rotation of capital from growth to value stocks. Up until now, most of the year has consisted in looking for a safe-ish return, favouring those stocks with strong financial ratios and sales data, leaving sectoral and cyclical stocks highly undervalued, that is if we stick to a forward-looking theme.


FTSE MIB Forecast: Further Growth Potential for Undervalued Stocks

Created in TradingView

This allows for some of the hardest-hit European indices to catch up to their US counterparts, most notably those who have had the hardest blow from the coronavirus outbreak, which include Spanish, French and Italian stocks. The FTSE MIB has done a great deal already to catch up in the last two weeks, even managing to close the coronavirus gap, a big deal given its previous failed attempt back in July.

FTSE MIB Daily chart (07 March 201917 November 2020)

FTSE MIB Forecast: Further Growth Potential for Undervalued Stocks

But, aside from the IBEX 35, the FTSE MIB is lagging other European indices in their attempt to recover the losses seen since March, If we compare Fibonacci levels, the CAC 40 is attempting to push above the 76.4% retracement, while the DAX 30 has been attempting to push towards the 100% line for the past three months. Similar to the FTSE 100, the FTSE MIB is only now securing the 61.8% retracement level, suggesting that there is greater upside potential if focusing solely on risk-on sentiment given positive vaccine news.

If we see a persistent rotation towards cyclical value stocks there are a few technical levels to look out for. The psychological 22000 mark is a good place to start if we’re looking for areas of increased selling pressure, given that setbacks and corrections are inevitable when consolidating a long-term trend. Further on, the 22350 area could offer increased resistance, given it was the area that stopped an attempted recovery of the immediate aftermath of the initial coronavirus outbreak, and also a significant level back in mid-2019.

From a wider macro perspective, three external factors have now lined up to offer what could possibly be the next bull run. On one hand we have the outcome of the presidential election in the US, followed by a possible solution to the coronavirus pandemic and lastly increased talks of a possible Brexit deal to come. All these seem to be clearing up uncertainty in the market, which has been the main factor holding up further gains in equities, leading to the possibility of sustained market rallies.

But let's not forget that the threat of continued spread of coronavirus is still very real given that, even in the best case scenario, a meaningful rollout of the vaccine is unlikely to take place before mid-2021, meaning that economies are still braced for one of the hardest winters. And Italy is again one of the top European countries suffering from the second wave of the pandemic, with more than 40,000 daily cases and hospitals on the verge of saturation, with local doctors calling for a nationwide lockdown to avoid a collapse of the healthcare system.


FTSE MIB Forecast: Further Growth Potential for Undervalued Stocks

--- Written by Daniela Sabin Hathorn, Market Analyst

Follow Daniela on Twitter @HathornSabin

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.