In recent sessions the Ibex 35 has not been able to overcome the resistance zone that it found at last year’s highs – around 12,000/12,150 points-. Its inability to overcome levels that the rest of the European stock markets have already managed to overcome, only shows a certain weakness of an index that has traditionally been considered as intuitive in order to anticipate market movements.
Despite everything, The Spanish selective faces its weekly closing at the doors of that resistance. “I would be calmer if the Ibex 35 managed to overcome the resistance it faces in this rise, which would cancel the possibility that a head and shoulders pattern or a double roof“, highlights Joan Cabrero, technical analyst and strategist at Ecotrader.
The index’s chances remain intact as long as it remains above the key support of the 11,300 points and, especially in the short term, as long as there are no signs of weakness, something that would happen if it pierced the support of the 11,635 points.
Manual to identify the risk of a ‘throw back’ in the stock market
After having broken the ceiling of the consolidation process that it had been developing over the last nine months, the EuroStoxx 50 has opened officially and technically the door to the search for objectives that are around the historical maximums (with no effect on discounted dividends) that it set in the year 2000, around the 5,522 points.
“There will be no signs of buyer exhaustion in the very short term as long as the EuroStoxx 50 continues to close above the minimums it marks each day,” details Cabrero, who warns that the latest ones are in the 5,184 points.
“As soon as this series of daily bullish sessions is cancelled, we could attend a classic throw back to the 5,000/5,050 pointswhich is where I would take the opportunity to buy the European stock market, assuming that there will be no danger in the upward trend as long as an eventual cut does not lead the EuroStoxx 50 to lose the December lows in the 4,800 points“, projects the expert.
Japan raises interest rates for the first time since July
The last day of the week ends with widespread gains in the Asian stock markets that only find one caveat, the one offered by the Nikkei, which is trading with slight declines after the Bank of Japan raised interest rates for the first time since July. and waiting for the governor of the BoJ, Kazuo Ueda, to give more clues about the pace of future increases in the price of money in his press conference this afternoon.
In China, the stock markets close the week with gains in the heat of Donald Trump’s statements in an interview with Fox News in which he defended that he would prefer not to have to use tariffs against the second largest economy in the world. “The situation is definitely moving away from the worst fears regarding US tariffs”Royal Bank of Canada analysts discount in statements to Bloomberg.
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