The main European indices were also conditioned by the United States electoral campaign. AND the Ibex 35 has not been immune to this volatility in the market. The Spanish selective has been listed since September wedged between 11,500 and 12,000 points. In fact, the Ibex 35 will wait for the result of the duel between Kamala Harris and Donald Trump below this reference. From an aspect of technical analysis, the Spanish stock market reference has been advancing sideways for 27 sessions in a “no man’s land”, in the words of Ecotrader advisor, Joan Cabrero.
The Ibex 35 hit its ceiling on the stock market in 2024 on October 16 at 11,996.7 points at the close of the session. Since then it has fallen by 1.6%, which implies being in the middle part of the range in which the Spanish selective is trading. Specifically, the advisor ecotrader indicates a resistance zone at these highs of the year, the 12,000 points that were crossed punctually, and a support that would be found in the area of 11,560-11,600 points. “In the short term, these are the levels that must be monitored in the Spanish stock market reference,” commented Cabrero.
For the moment, the situation of the Ibex 35 is bullish as long as the support of 11,600 points is not lost. That is, the Spanish selective is in a technical situation similar to that recorded by other European indices such as the EuroStoxx 50, which shows no signs of weakness beyond being 3% from the September lows of 4,730 points.
However, the loss of support at 11,560-11,600 points would change the outlook for Spanish equities and open the door to a larger consolidation. A priori, and at current prices, the Ibex 35 should lose 2.1% to surpass this reference. If the Ibex 35 were to give up and trade under this support, the falls within the Spanish selective could take the index to the area of 10,900-11,000 points. “To see the worst case scenario we would first have to lose the intermediate support of 11,138 pointswhich are the September floor and a technical reference that should also be monitored,” commented Cabrero, who also believes that this level would stop the falls and avoid going deeper in search of greater collapses.
In this way, the Ecotrader advisor considers that an eventual correction to the area of 11,000-11,138 points would mean a buying opportunity in search of a rebound later on the Ibex 35. Similarly, operationally, the Spanish stock market could be bought again aggressively with protective stops placed at 11,560 points.
#Ibex #stuck #points #awaiting #result #elections #United #States
