Today we prefer to focus on how to close a trade in take profit, based on objective indications. In this specific case, we have examined via the Inch platform (Inch Platform) the short trade still ongoing, concerning Banca Mediolanum stock (wikipedia.org/wiki/Banca_Mediolanum).

 

Banca Mediolanum – daily bar chart – daily closing 6.025 – Update June 11th, 2018 

The chart shows the short trade still ongoing concerning Banca Mediolanum stock, which has been showing a bearish trend for about four months

InchCapital Platform – Banca Mediolanum – Daily bar chart – Update June 11th, 2018

 

As is clear from the chart above, the position is still short with a stop at 6.056. The stock is among the weakest in the MIB 40 basket (read more InchCapital Platform – Banca Mediolanum – Customer Report – Update June 11th, 2018) and currently occupies the thirty-eighth position on the forty components by score based on the trend / momentum DSS.

 

Banca Mediolanum – weekly bar chart – daily closing 6.025 – Update June 11th, 2018 

The chart shows the medium / long-term bearish trend represented by the time weekly bar series, which has a short trade with a 6.568 stop level

InchCapital Platform – Banca Mediolanum – Weekly bar chart – Update June 11th, 2018

 

The bearish trend is also confirmed by the weekly chart, which highlights the importance of the support achieved (5.745) not only for the short but also for medium / long-term expectations.

That said, at the end of each week we calculate the quantitative forecasts for the next twenty trading days and Saturday morning we had this situation with regard to the components of the MIB 40 index.

 

FTSE MIB 40 – reward/risk list – Update June 8th, 2018

The picture shows the list of stocks in the MIB 40 basket, listed for reward / risk ratio, led by the Banca Mediolanum share with a ratio of 4 to 1

InchCapital Platform – MIB 40 reward risk list – Update June 8th, 2018

 

The first reward / risk stock opportunity was Mediolanum with a ratio of 4.12 theoretical return versus one of certain risk. What do I mean?

 

Banca Mediolanum – Pattern Prediction for the next 20 trading days – Update June 8th, 2018

The chart shows the forecast trend of the Banca Mediolanum share price envisaged by the quantitative analysis for the next twenty trading days.

InchCapital Platform – Banca Mediolanum – Pattern Prediction for the next 20 trading days – Update June 8th, 2018

 

The pattern prediction for the subsequent twenty trading days showed a substantially contained decrease since the maximum expected loss is of 1.75% compared to the closing of Friday 8 June recorded at 5.8150 while on the other hand the possible bullish reaction goes from a minimum of 5.35% to a maximum of 19.31%.

 

Banca Mediolanum – Trend Stage daily and weekly – Update June 11th, 2018

The two sinusoidal charts show the Banca Mediolanum share performance compared to its cyclical phases of daily and weekly momentum

InchCapital Platform – Banca Mediolanum – Trend Stage daily and weekly – Update June 11th, 2018

 

In addition, the position of the trend stage daily compared to the weekly is not propulsive but it is in an inertial phase.

Conclusions:

the stock can continue the rebound highlighted at the beginning of the week, therefore be aware that the first stop is at 6.056. The “dead cat bounce” can progressively heading towards the stop of the weekly short trade, which is currently at 6,568. Only below 5.7450 will represent the bearish characteristics highlighted in the last four months.