He EuroStoxx 50 in its Total Return SX5R versionwhich takes into account the distribution of dividends, lost last week the bullish trend that arose from combining the minimums of 2022, 2023 and August 2024. “This has opened the door for the main European reference to go to seek support for the August lows at 10,900, which are still almost 3% away,” explains Joan Cabrero, technical analyst and strategist at Ecotrader. who doubts that a reliable bullish turn can be seen in continental stock markets without first providing that key support and red line be put to the test.
“In that support environment of the 10,900 points of the SX5R is where I would be in favor of buying the European stock market again with the ammunition that they should have if they were able to reduce exposure a couple of weeks ago when the Russell 2000 reached the high zone of 2021 “says Cabrero, who also recommends monitoring the behavior of the German DAX 40, which threatens to confirm a bearish pattern in the form of head and shoulders which would open the door to an additional 4% drop. This pattern would be confirmed if it loses the 18,900 points that, for the moment, are resisting the bearish advance.
The possibility of a return to the August lows that the EuroStoxx 50 has opened in its Total Return SX5R version, after losing last week the bullish trend that arose from joining the lows of 2022, 2023 and August 2024, together with The threat of the Dax 40 to build a bearish head and shoulders pattern that would open the door to an additional 4% decline only highlights the In recent days, the opportunity to buy again the European stock market is presented to the investor, who – if these declines materialize – would face “a much more attractive profitability/risk equation than weeks ago,” explains Cabrero. “In fact,” says the expert, “If we have that drop, it is likely that we will have a Christmas rally that would be easier to take advantage of than if there was not that drop”.
In the case of the Ibex 35, operationally the levels that Ecotrader has set as optimal to buy the Spanish stock market again, are in the 10,900/11,138 pointswhich is where the bullish trend that has been guiding the increases from the 2022 lows runs.
And all this would be seen seasoned with a Wall Street where no one should be surprised that a fall will finally form that will serve to relieve the overbought resulting from the latest strong increases seen after the elections that ended up elevating Donald Trump as the new elected president of the United States.
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