The process of digestion part of the last bullish stretch that the Ibex 35 is going through has notably delayed the attack on the psychological resistance that the selective finds in the 12,000 points which, at the moment, is being tough to fight.
“Despite everything,” explains Joan Cabrero, technical analyst and strategist of ecotrader“at this time I do not detect any technical evidence that warns of the possibility of witnessing a setback that could be sustainable over time, so everything indicates that it is a matter of time before the Ibex 35 ends up exceeding 12,000 points to treat to overcome the next obstacle that will be found in the maximums established in 2010 in the 12,240 points“.
“There will be no sign of bullish exhaustion that is worrying as long as the Ibex 35 does not lose the support it presents in the 11,560 pointswhich is where the last consolidation of the Spanish selective stopped,” the expert reassures. That is where the level could now be located whose transfer would invite to reduce the exposure a little and collect partial benefits, but as long as that support is not lost the bias of trading remains bullish.
In Europe, the EuroStoxx 50 will not show greater weakness in the short term as long as it remains above the support it presents in the 4,900 and 4,870 points. “From there he should try to push forward to attack the high area in the 5,120 points“says Cabrero, who assures that in the worst case scenario, if he loses the 4,900/4,870 points“we could see a broader consolidation phase, which would not surprise me and would fit with what I thought could happen weeks ago.”
Wall Street Earrings
The health of the US and Chinese economies (and the decisions of their central banks to remedy it), on the one hand, and geopolitics with the impact of the hostilities in the Middle East as the maximum exponent, are the two great vectors that are marking the evolution of the stock markets in recent weeks and that have caused the Nasdaq 100 on Wall Street to choose to move sideways.
In fact, in recent hours the North American stock market has put on hold its attempt to recover the highs it established in mid-July around 20,690 points. “It will probably end up exceeding this level,” reassures Cabrero who continues to insist on monitoring the evolution of small and mid-cap companies in the US.
And the thing is, the Russell 2000 has homework pending to reach the highs of 2021 in the 2,460 points and until then there is still a margin of increase of 7%.
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