The declines observed during the first sessions of the week on the main European stock exchanges have not, for the moment, caused the loss of any reference support level nor made the bulls nervous, who They continue to control the market despite the consolidation of the last hours.
In fact, these declines favored the digestion of the bullish movement that caused the Ibex 35, for example, to hover around the psychological resistance zone of the 12,000 points. “We are seeing what is technically called a rollback or go back to the former resistance zone, now support, of the 11,470 points“explains Joan Cabrero, technical analyst and strategist of eco-retailerwhich underlines that between this support or the 11,138 pointswhich are the September lows, the declines should be stopped and the upward trend resume.
What’s more, the declines in the last hours of the European stock markets did not even lead the selectives to cross their first support levels. And even less the levels at which, in the worst case, Ibex 35 could approach.
This is the minimum zone for July, around 10,840 points. “That’s where the yellow line in the case of the Ibex 35″, Cabrero emphasizes that operationally, as he has been insisting for days, to buy, he suggests waiting until the last big increase is corrected and these supports are reached: “We let’s work. Patience”.
In Europe, an upcoming return to 4,850-4,900 points could be used to increase positions on the European stock market, by managing a stop linked to not losing the September minimums in the 4,732 pointswho is the yellow line or a support that must no longer be lost if we want to continue to have confidence in a bullish context in the short/medium term.
Asian earrings
In Asia, despite the fact that the Chinese stock market is still closed for holidays (and will remain so until October 8), the Hong Kong stock market took over from its continental counterpart by reopening today and appreciated by more than 7% at certain times of the day in the heat of the stimuli and progress of real estate companies, which should benefit the most from the government’s support measures for the country’s economy.
