At the expense of knowing the final result of the presidential elections on the other side of the Atlantic, the provisional count points, for now, to a victory for the Republican magnate donald trumpsomething that – at the moment – is causing the bears to prevail in the European stock markets. The futures of the stock markets of the Old Continent predict this and also the analysts, who pointed out that the triumph of the former president could provoke this reaction in the countries that were affected by his trade policies.
The Ibex 35, which has been consolidating positions laterally between the support of 11,560/11,600 and the resistance zone of 12,000 integers for twenty-eight sessions, would thus approach that support of 11,560/11,600 pointswhich is the yellow line or level that must be monitored in the short term from a technical point of view because His transfer would open the door to a larger consolidation that could look for in the worst case the 10,900/11,000 points.
“It would be necessary to see if the intermediate support of 11,138 points, which are the September minimum, manages to stop an eventual fall, but operationally, if you ask me where I would be in favor of buying the Spanish stock market again, I would answer no before 11,000 /11,138 points. If this fall were to take shape, I would be in favor of taking advantage of it to buy. christmas gifts in search of a rally of the End of the Year, which I fear will be more complicated to see if there is not that drop,” says Joan Cabrero, technical analyst and strategist of ecotrader.
In Europe, the door to a broader consolidation phase is already open after the EuroStoxx 50 gave up the support it presented in the 4,900/4,870 points.
Technically, the EuroStoxx 50 runs the risk of ending up going to the September lows in the 4,730 points or, in the worst case, the 4,675/4,700 points.
“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. I would consider reducing it a little if it gives way to the September lows in the 4,730 points and above all the 4,675/4,700 pointswhich is the 61.80/66% adjustment of the entire latest rally from the August lows.
Eyes on Wall Street
No one has any doubt that the presidential elections in the United States have captured the market’s attention in the last few hours. The reaction of the stock markets is key, especially those on Wall Street, because it depends on whether there is a loss of relevant support or not. It is about the 2,180 Russell 2000 points. “If this support falls, I fear that the door would open to a more corrective than consolidative context on Wall Street, which could lead the North American stock markets to look for supports such as 19,000 points in the case of the Nasdaq 100“explains the technical analyst and strategist of ecotrader.
“In that environment we now find the important average of 200 sessions and a drop to that point would mean a replica of the decline we saw at the end of August and beginning of September, which took the main technological index from 20,000 to 18,400 points, which “They are the September minimums and the yellow line,” the expert explained in his weekly strategic commentary. Up to 18,400 points there is a margin of fall of an additional 8%
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