The European and US stock markets are in pause mode in recent days waiting to know the decisions of the central banks on interest rates in the last meeting of the year that they face in the coming days. In fact, today the markets are awaiting the key data on inflation that will be published in the US and which are presumed vital in order to obtain clues as to whether the Federal Reserve will cut or maintain the price of money next week.
In this context and despite the declines that the Ibex 35 has experienced in recent sessions, “there will be no sign of bullish deterioration that would jeopardize the possibility of seeing a continuity of the current Christmas Rallywhich could look for the growing resistance that appears through the 12,400/12,500 points, whose breakup would be the icing on the bullish cake of this 2024, as long as an eventual fall does not lead the Ibex 35 to pierce the support of 11,580 points,” explains Joan Cabrero, technical analyst and strategist at ecotrader.
There are last week’s lows, which are relevant from a technical point of view since they allowed the Ibex 35 to overcome resistance.
In search of more strength in Europe
In Europe, the EuroStoxx 50 has confirmed in recent weeks that it is now ready to move upwards, but to achieve this it must overcome its highs of the year, which are in the 5,125 points. “Of course, says Cabrero, “the continental selective is in a position to achieve it after having developed a consolidation during the last eight months, very similar in proportions to that seen in 2023.”
The breaking of the maximums of the year would allow favoring a bullish 2025 towards at least objectives of 5,500 pointswhich are the historical highs of the dotcom bubble of the year 2000, although more ambitious objectives could be valued at 4,800 points, which come from projecting the amplitude of the last consolidation.
As the analyst commented in his weekly strategic commentary, for this scenario to gain strength, what happens on the other side of the Atlantic will be crucial. “This is where the poker of aces comes into play, the Russell 2000, an index that groups US small and mid-cap companies, must clearly surpass the maximums of 2021 located at 2,465 points”, explained.
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