After twenty-four sessions consolidating positions laterally between the 11,560/11,600 and the 12,000 integersthe Ibex 35, has sibyllinely approached the lower part of that range in recent sessions, to the point of being less than 1% of said support in yesterday’s day.
In fact, “in this Wednesday’s session that support was hammered (hammer-shaped candle) which reinforces the importance of the level,” says Joan Cabrero, technical analyst and strategist of ecotraderwhich emphasizes that “there will be no technical evidence that warns of the possibility of seeing a decline that can be sustainable over time as long as it does not lose that range.”
“The Ibex 35, at the moment, is holding up hammer blows of the selling pressure, and everything indicates that if it continues like this it is a matter of time before it ends up exceeding the 12,000 pointsto try to beat the next obstacle that will be found in the maximums established in 2010 in the 12,240 points“says the expert.
In Europe, for its part, this Wednesday it tested the support it presents in the 4,900/4,870 pointswhich this Wednesday. It will be necessary to see if this Thursday, where we have an appointment with the monthly close of October, the main European reference manages to remain on this support.
“There will be no news from a technical point of view while the EuroStoxx 50 remains on that support,” Cabrero reassures, but “If it finally loses that range of levels, we could see a broader consolidation phase, similar and proportional to the last consolidation phase prior to the August crash.“.
The bears have taken control of the stock markets in the last few hours after the declines seen yesterday on Wall Street, where the growth data for the US economy was released, which show great strength and of the Federal Reserve with interest rate cuts.
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