After eleven consecutive weeks (almost three months) closing above the minimums of the previous week, the IBEX 35 today faces one of those days of vital importance for its future. A day in which it must decide if it gives continuity to the accumulated upward trend since then – which has allowed it to be revalued more than 12% from the minimum of December – or if as everything points, this streak could break, since it seems difficult that it manages to close on the 13,000 pointslevel that marked the minimum of last week.
“As they usually say, Until the tail, everything is bull“, warns in that sense, Joan Cabrero, technical analyst and ecotrader strategist that highlights that” with Wall Street approaching the theoretical support area that suggested to wait before starting shoot your ammunitionI would not be surprised or tear my clothes if Ibex 35 manages to bounce and close above 13,000 points, thus prolonging its upward streak to twelve weeks. “
Anyway, and given the possibility that the selective is not able to prolong its upward streak, it never hurts to check where the first supports to be monitored in the index are located, which appear in the 12,630 points (Wednesday reached 12,706) and the next in the 12,380 points.
This is how Cabrero, who points out that “then we should consider that in the worst case we could see falls to the 12,000/12,135 pointswhich would mean a correction of two thirds of the entire last upward movement that was born in the 11,300 points“
In the case of Eurostoxx 50, with the recent transfer of the 5,370 pointsthe European index has entered into a more corrective dynamic than consolidative, which “raises falls towards at least The 5,180/5,200 pointsbut the risk is that he can return much of what he won at this beginning of the year, going to seek support to the old resistance zone, now support, of the 5,000/5,120 points“Cabrero points out.
Time to bounce for the S&P 500?
The confirmation or not of the loss to a weekly closure of the Ibex of the minimums of the previous week will depend, in large part of what happens in the director market, Wall Street, where selective such as the S&P 500 quote attached to the support zone they find in the 5,520 points (Analogous to the 18.700/19,000 points in the Nasdaq 100). “The S&P 500 has already fallen from its last maximum by 10%after reaching 5,528 points, “says Cabrero in this regard and points out that” so close to these levels I am more in favor of thinking of buying than to sell. “
Of course, if the falls go further and the Nasdaq 100 loses that range of the 18.700/19,000 pointsthe technical panorama would become more complex and potentially bassist. “In this sense, I want to see the weekly closure since the Dow Jones Industrial is threatening to confirm a powerful double -ceiling -shaped pattern, something that would take body if it fails to recover at the end of the week the 41,650 points,” recalls Cabrero.
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