Turbo Certificate

This stock is overbought but can still go higher. Here because

This stock is overbought but can still rise: it is A2a, with an increase of more than 7% in the last week which crowns it the queen of the blue chips.
The Lombard utility recorded a record balance sheet in the first 9 months of 2023, with a net profit of 402 million euros, an increase of 26% compared to the previous year.
Despite the contraction in turnover due to electricity and gas prices, EBITDA recorded an increase of 19%, reaching 1.354 billion euros.
CEO Renato Mazzoncini underlined the significant investments in new photovoltaic and wind plants, the strengthening of networks and the recovery of material and energy.
The company announced ambitious targets for 2023, with an expected EBITDA between 1.88 and 1.92 billion euros and a net ordinary profit between 550 and 570 million.
These results led Equita SIM analysts to revise their estimates for 2024 upwards, also raising the target price of the stock by 10%, to 2.15 euros.
Analysts underline the solidity of A2A's growth path, highlighting the improvement in industrial performance, the forward sale of 60% of hydroelectric production for 2024 and the optimism regarding hydroelectric concessions.
Banca Akros analysts confirmed a "buy" rating and revised the target price upwards to 2.45 euros, considering A2A's accounts better than expectations.
A2a: operational strategies with UniCredit Turbo Certificates From a graphic point of view, A2a culminated at the highs of 2021, at 1.95-1.96 euros, with a boost that could anticipate an extension of the rally that started a year ago.
However, the arrival at this critical resistance and the crossing into the extreme overbought zone are two disturbing elements capable of slowing down the growth ambitions of the stock, at least in the very short term.
We will therefore need momentum beyond the 1.96 area to believe in the bullish hypothesis towards a target of at least 2.10, then to 2.35-2.40 euros.
On the contrary, the risk of seeing a new corrective phase would increase significantly in the event of drops below the 1.75 area.
To trade "long" on A2a it might make sense to use a Unicredit Turbo Open End certificate with ISIN DE000HC915F8.
The certificate has A2a as its underlying and has a barrier currently 15.78% away.
To operate "short", however, it may be appropriate to use Unicredit's Turbo Open End Short certificate with ISIN DE000HC9AY64, having a barrier distance of 13.72% and A2a as the underlying.
We remind you that this barrier corresponds to a real stop loss, intrinsic to the product, upon touching which the position is automatically closed.
Furthermore, Unicredit's Turbo Open End certificates eliminate the problem of the investment time limit without maintaining the presence of the annoying compounding effect.
However, they are complex financial instruments: for trading operations it is important to set a stop loss based on your needs and the right money management rules.
Discover all UniCredit Turbo certificates

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