In the absence of knowing the final result of the presidential elections across the Atlantic, the provisional count points, for the moment, towards a victory for the Republican magnate. Donald Trumpsomething which – for the moment – makes the declines prevail in the European stock markets. This is what the future of the stock exchanges of the Old Continent predicts, as well as analysts, who stressed that the triumph of the former president could provoke this reaction in the countries affected by his trade policy.
The Ibex 35, which has been consolidating its 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 this support of 11,560/11,600 pointswho is the yellow line or level that needs to be monitored in the short term from a technical point of view because His transfer would open the door to broader consolidation who could look in the worst case for the 10,900/11,000 points.
“It would be necessary to see if the intermediate support of 11,138 points, which is the minimum of September, manages to stop a possible decline, 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 decline were to take shape, I would be in favor of taking advantage of it to buy. Christmas gifts looking for a rally of the end of the year, which I fear will be more complicated to see if there is not this drop”, says Joan Cabrero, technical analyst and strategist of eco-retailer.
In Europe, the door to a broader consolidation phase is already open after the EuroStoxx 50 gave up the support it provided during the previous financial year. 4,900/4,870 points.
Technically, the EuroStoxx 50 runs the risk of ending up hitting September lows 4,730 points or, in the worst case, the 4,675/4,700 points.
“There will be no weakness and I will not recommend drastically reducing exposure to the European stock market until the EuroStoxx 50 loses its August lows. 4,470 points. I would consider trimming it a bit if it gives way to September lows in the 4,730 points and especially the 4,675/4,700 pointswhich is the 61.80/66% adjustment of the entire last rally from the August lows.
Eyes on Wall Street
No one doubts that the presidential elections in the United States have captured the market’s attention in recent hours. The reaction of the stock markets is decisive, in particular that of Wall Street, because it depends on whether or not the support in question is lost. This is the 2,180 Russell 2000 points. “If this support falls, I fear that the door will open to a more corrective than consolidative context on Wall Street, which could lead North American exchanges to seek supports such as 19,000 points in the case of the Nasdaq 100” explains the technical analyst and strategist of eco-retailer.
“In this environment we now find the significant average of 200 sessions and a drop to this point would mean a replication of the drop we experienced in late August and early September, which took the main technology index from 20,000 to 18,400 points, which “these are the September minimums and the yellow line”, explained the expert in his weekly strategic commentary. Up to 18,400 points, there is a margin of decline of an additional 8%.
