The bullfighting (bulls) have won the battle against the bears (bassists) on the European stock markets in recent days. It is something evident that has been ratified by the EuroStoxx 50 in its traditional version, which managed at the end of last week to break the ceiling of the consolidation process that had been developing during the last nine months.
“Its breakup is a clear sign of strength that opens the door to the search for objectives that for months I have valued at the historical highs (without the effect of discounted dividends) that the EuroStoxx 50 marked in 2000 at around 5,522 points,” explains Joan Cabrero, technical analyst and strategist of ecotrader.
“The only but “What I put to that breakout is the fact that the EuroSrtoxx 50 in its Total Return version has not yet surpassed the highs of 2024, for which it should beat the resistance of 12,000 integers,” the expert clarifies.
The importance of Telefónica in the Ibex 35
Another of the episodes that should occur in the next sessions and that until it happens makes the technical expert distrustful, is the protagonist of the Ibex 35. The fact that the Spanish selective has not managed to surpass last year’s highs in 12,000/12,150 pointsit’s something to keep in mind.
This is a resistance that has already been overcome in many of its European counterparts. “It strikes me that the always intuitive Ibex 35 has not yet managed to break the roof of the lateral process that it has been developing in recent weeks. I would be calmer if the Ibex 35 managed to beat 12-12,150 points in this risewhich would cancel the possibility that a pattern in the form of head and shoulders or a double roof“, highlights Cabrero.
Therefore, this week we will have to see if these doubts have been a simple temporary weakness. And Telefónica, recently involved in a strategic change in its direction, will have a lot to do with it.
And the telecommunications firm is among the ten that weigh the most in the Spanish selective weight about 4% in the Ibex 35 according to data offered from FactSet. For now, the index has managed to remain above 11,635 points and would only show weakness if it lost that level. “If that happens everything would point to a return to 11,300 points, but as long as it resists on this support I do not rule out that it could go to attack resistances,” warns Cabrero.
TikTok returns, the Chinese stock market soars
He green reigns supreme in Asian equity markets. The stock market of Japan and, especially, that of Hong Kong in China, become spearhead of the bulls after learning that Donald Trump and Xi Jinping – top leaders of the US and China – have had a conversation in the last few hours that have raised hopes of ease tensions between the United States and China. In fact, the increased appetite for risk assets came after Trump called the conversation on trade, TikTok and fentanyl “very good.”
The conversation has been seen by investors and analysts as a milestone that could set the tone for relations in the early days of the new administration and has contributed to the more positive mood. Especially after it was learned that TikTok had begun to restore the service in the US after confirming that Trump would stop the application of the law that forces the Chinese owner of the application to find a buyer in the next three months. The stock markets of Europe and Wall Street are more cautious as they await the official inauguration of the magnate as the new elected president of the United States.
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