Even if it is true that the Ibex 35 remains no man’s landalmost the same distance from the year’s highs in the 12,000 integers and the theoretical support zone such that 11,130 pointsIt is also true that the market is not giving up its efforts to look for catalysts that give clues about the direction that the stock markets could take in the latter part of the year.
And the fact is that bulls and bears have followed one another over the last few hours in the main indices while waiting to know more details on the last major market catalyst, the appointments of the new American president, Donald Trump, to his team government.
Technically speaking, the last of these is in the return to the uptrend that guided the rises from the 2022 lows in the banking sector SX7R. “This is a scenario that would win entirely if the fall that threatens the confirmed turn pattern takes shape,” underlines Joan Cabrero, technical analyst and strategist at eco-retailer.
That is to say, the banking sector can be the catalyst for the Ibex 35 to seek its guideline that crosses this environment of 11,130 points, which are the minimum of last September. “Its objective would be a magnificent opportunity to buy the Spanish stock market again in search of a bullish final part of the year or the famous Christmas rally,” explains the expert.
In Europe, for their part, the main European stock exchanges remain on their key supports, such as the 10,900 of the EuroStoxx 50 in its Total Return version (not to be confused with the Net Return) and the 18,900 German DAX 40 points. The analogous support of the EuroStoxx 50 in its traditional version would be the 4,600 points.
“As long as these supports are not lost, I am not in favor of further reducing exposure to the stock market, particularly in Europe. In fact, as these supports approach, I am more in favor of buying than “to the sell-off of the European stock market, this is why I am reluctant to execute stops in strategies that, in the short term, establish new decreasing lows”, explains Cabrero, who assures that the application of filters can. sometimes avoid false downward movements.
On an operational level, a decline that would bring European indices closer to support would promote a more attractive risk-return equation than today. “Think that right now we have the critical support and we stop at 4% while the first resistance is at the high of the year at 6% and if we drop 2%, what we have gained in recent days, the equation would be better,” specifies the analyst. eco-retailer.
