Stock of the day: ENI

Stock of the day: ENI
The prices of oil companies are currently influenced by two main forces. The first and bullish one is the earnings. Major companies are posting amazing earning reports, which shows that they are actually living the dream right now. The second force is pushing to the downside and it’s the current price of the oil, as well as the negative prospects for the near future.
In today’s piece, I will analyze ENI - an Italian oil giant who recently made new, long-term highs. This should be always perceived as a great sign, right? In this case, the situation gets a bit complicated. The recent rise to the new highs means a breakout of the yellow resistance around 14.55 EUR. Unfortunately, buyers failed to hold above that support, creating a risk of a false bullish breakout (blue) that is very often a signal to go short.

Technically, as long as we stay below the yellow area, the mid-term sentiment remains negative. The pullback from the top was pretty strong, and thus sellers have an edge now. My view on ENI is currently bearish and will remain this way as long as the price stays below the 14.55 EUR mark.
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