The last few days of consolidation observed on the European stock market made it possible to digest the sharp increases at the end of September. However, rather than scaring the bullfight of the continental market, this consolidation must be seen as an opportunity for all those who want to continue participating in the parquet trend of recent weeks and who They were not able to reap all the possible benefits from the bullish movement from the start.
This is how Joan Cabrero, technical analyst and strategist of eco-retailerwho assures in the new chapter of the Market Strategy podcast, that it is in the phases of consolidation of increases – generally viewed with suspicion – that the best buying opportunities are found.
“My recommendation has always been clear: you have to know how to buy when the market digests increases, but only after having carried out an analysis which confirms that the underlying trend is still upward,” explains the expert. “Currently, we are in one of these digestion phases, after having received a bullish signal a few weeks ago which removed the risk of falling back to the August lows,” he says.
This is why, If the market gets closer to the supports without losing them, This would be a great buying opportunity. “Remember what I always tell you: No one escapes here! We must not be alarmed by the digestion phases, but prepare ourselves and take advantage of the potential for a rebound,” specifies the expert, who however invites us to monitor intermediate supports whose loss would indicate that something is wrong on the market.
This support is located at the September lows and is at 4% on the EuroStoxx 50 and 6.5% on the Nasdaq 100: the 18,400 points on the Nasdaq 100 and 4,740 points in the EuroStoxx 50.
In this sense, the analyst eco-retailer highlights three areas to focus on during this consolidation phase: the arms sector, the energy sector And the luxury sector. These are three areas which could offer great opportunities as a whole and which are also made up of companies which in many cases are technically attractive.
