Stock of the day: Eni

It’s a new week and we have an update on Eni, the major Italian oil company. We previously mentioned this instrument on May 25^th when its price was inside of the symmetric triangle pattern. Back then, we were waiting for a trading signal and said:

“It’s a bad place to trade but it’s great to prepare for a trade. At some point, ENI has to end this triangle with a breakout. Usually, a breakout to the upside gives a strong buy signal and a breakout to the downside gives a sell signal. All that’s left to do now is to wait for the breakout. They say that patience is the virtue of a successful trader. Thanks to examples like this, you know why.”

As you may expect, the price did escape from the triangle and we did get that buy signal. Of course, surging oil prices were the main contributor there. Technically, the breakout looked really sweet. The price broke the upper line of the formation and then reversed a little to test it as a support. The test was positive for buyers, and the price jumped significantly higher.

Today, ENI is breaking the horizontal resistance on the 14.4 EUR (yellow), which is a great and needed confirmation of a positive sentiment. As long as we stay above the upper line of the triangle, the buy signal is ON. Target? Well, with the current market situation, the sky’s the limit.