Although it is true that the Ibex 35 remains at no man’s landalmost at the same distance from the highs of the year in the 12,000 integers and the theoretical support zone such as 11,130 pointsIt is also true that the market does not give up in its efforts to look for catalysts that give clues as to where the stock markets may go in the final stretch of the year.
And the thing is, bulls and bears have taken turns in command over the last few hours in the main indices waiting to learn more details of the last great market catalyst, the appointments of the new US president, Donald Trump, to his government team.
Technically speaking, the last of them can be found in the return to the bullish trend that has been guiding the increases from the 2022 lows in the SX7R banking sector. “It is a scenario that would win entirely if the fall that threatens the turn pattern that has been confirmed takes shape,” highlights Joan Cabrero, technical analyst and strategist at ecotrader.
That is to say, banking can be the catalyst for the Ibex 35 to seek its guideline that runs through that environment of 11,130 points, which are the minimum of last September. “Its scope would be a magnificent opportunity to buy the Spanish stock market again in search of a bullish final stretch of the year or the well-known Christmas Rally,” says the expert.
In Europe, for its part, the main European stock markets remain on their key supports, such as the 10,900 of the EuroStoxx 50 in its Total Return version (not to be confused with the Net Return) and the 18,900 German DAX 40 points. The analogous support in the EuroStoxx 50 in its traditional version, this would be the 4,600 points.
“As long as these supports are not lost, I am not in favor of further reducing exposure to the stock market, especially the European one. In fact, when approaching these supports, I am more in favor of buying than selling the European stock market, which is why I am reluctant to execute stops in strategies that in the short term are setting new decreasing lows,” explains Cabrero, who assures that applying filters can sometimes avoid false falling movements.
Operationally, a fall that brings European indices closer to support would favor a more attractive risk-return equation than now. “Think that right now we have the critical support and stop at 4% while the first resistance at the highs of the year at 6% and if we fall 2%, which is what we have gained in recent days, the equation would be better” , clarifies the analyst ecotrader.
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