The bulls on Europe’s main stock markets have been more consistent than those on Wall Street so far this year and they have managed to ensure that their selective companies register profits so far in 2025 that in some cases have exceeded 5%. This is the case of the Italian Mib, which stands as the index that has appreciated the most so far this year in Europe and that exceeds the 4% gains of the EuroStoxx 50. However, the continental selective has achieved a milestone in recent hours technically noteworthy: beating the bearish trend that has been guiding the consolidation process that has developed over the last nine months.
“This reference ran through the 5,050 points and its breakup is a clear sign of strength and now we just have to wait for its breakup to be confirmed and to do so it must also overcome the first resistance it finds in the 5,125 pointswhich are the highs of 2024,” highlights Joan Cabrero, technical analyst and strategist at Ecotrader.
“Overcoming these resistances It would open the door to the search for objectives that I have valued at historical highs for months (without discounted dividends effect) that the EuroStoxx 50 marked the year 2000 at around 5,522 points,” says the expert.
An objective that could be even more ambitious if one takes into account that from a technical point of view, it is common for a new bullish impulse to cover at least the width of the previous lateral range, “which could take the index towards 5,800 points,” he points out.
These are levels that evoke another era in which firms like Nokia dominated the market, but saw how the emergence of new technologies, changes in regulation, the evolution of consumption patterns and new competitors caused a continued adjustment of their relative position. of the companies. “These are companies that disappeared after enjoying dominant positions in their respective markets,” said Ricardo Jiménez, from Harmon, in one of the last forums written for elEconomista.es. And in that sense, in order to ensure that history does not repeat itself, he urged to monitor the results of companies, which “normally issue warning signals, such as a deterioration in its sales growth, results or cash generation. “We must be able to discern whether these potholes are the result of specific issues, or whether they respond to a progressive change in trend.”
In that sense, the forecasts of the average investment firms point to a growth in profits of the companies that now make up the EuroStoxx 50 that would exceed 6% by 2025. A substantial increase that invites us to discard the ghost of living in another bubble. And even more so if we take into account the multipliers at which the current components of the European index are quoted.
Luxury weighs down an Ibex closer to the dividing line between consolidation and correction
The Ibex 35 has fallen further behind at the beginning of the year. The Spanish indicator, which has barely made a 2% increase since January 1, is losing positions as it is not able to take advantage of the good performance of luxury companies in the equity market, where they revalued this Thursday after the results of Richemont (Cartier) were made public. The behavior of the Ibex 35 in this context, however, has now made it possible to identify new clues at a technical level.
And the fact is that the Spanish selective “has not even gone to seek support again from the key support of the 11,300 pointswhich is the dividing line that separates a consolidative context prior to more increases from a potentially bearish one towards the 10,300 points“, highlights Cabrero.
“In the short term the Ibex 35 would only show weakness if it lost the support of the 11,635 points. If that happens, everything would point to a return to 11,300 points. As long as it resists on this support I do not rule out that it could go to attack last year’s highs at 12,000/12,150 points“explains the expert, who operationally remembers that Only at the August lows would I consider buying the Spanish stock market attractive again with a medium-term orientation.
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