Intermediate support, bullish hope in the return of the Ibex 35 to 11,000 points

The publication of the names of some candidates of the president-elect of the United States, Donald Trump, to occupy key positions in his government, is fueling the nervousness of the stock markets in the last hours due to the fear that the magnate will complete his command cabinet with determined people to fully carry out the electoral program presented in the campaign regarding borders, trade, national security and economy.

In this context, the Ibex 35 continues to lose short-term positions. And even more so after losing the support of 11,560/11,600 points in the middle of last week, which was the lower part of the side that had limited the consolidation during the last months.

“This was anything but bullish and I have not tired of repeating it since then,” reiterates Joan Cabrero, technical analyst and strategist at Ecotrader, who recalls that The threat is that we are witnessing a larger consolidation that could look for in the worst case the 10,900/11,000 points.

However, bullish hope passes through the intermediate support of the 11,138 points of the national selective. They are the September lows and their reach and subsequent rebound from that environment is one of the hopes that the bulls maintain in the index today. “It can stop the fall,” says Cabrero.

In fact, the expert points out that once this level is reached, “I would be in favor of buying the Spanish stock market again; if that fall took shape, I would take the opportunity to buy christmas gifts since among the 10,900/11,138 points “The bullish trend that has been guiding the increases from the lows of 2022 runs.”

Europe, a more attractive risk/return equation

In Europe, the situation is similar. The EuroStoxx 50 is deepening its declines after breaking the support of the 4,900/4,870 pointsand is increasingly closer to the September minimum area around 4,730 points.

“The good news is that the reach of this zone of September lows at 4,730 points and, above all, 4,675/4,700 points (adjustment of 61.80/66% of the rise from August lows), I see it as an opportunity to buy again the European stock market with a much more attractive return/risk equation than weeks ago,” says Cabrero. And, “there will be no weakness nor will I recommend drastically reducing exposure to the European stock market as long as the EuroStoxx 50 does not lose the August lows in the 4,470 points“.

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