He misstep The bearish trend that marked the world’s major stock market benchmarks at the beginning of the month is now a thing of the past for many stock exchanges around the world. The meteoric rise since the five-month lows were reached on August 6 has made us forget the bad omens which were mixed together during the worst moments of this episode.
But August was not a quiet month for the stock markets. Not at all. It was a month of great volatility and important news that could have an impact on the new price.
Despite this, the Ibex 35 has not only managed to recover the levels at which it was trading before the major bearish setback that the main global stock market benchmarks experienced earlier this month, but it has added an advance of more than 9% from the lows of the last five months and is on track to record one of its best Augusts in recent years.
The Spanish index has appreciated by more than 2% so far this month. Since 2012, the Spanish selection has not registered a revaluation as high as the one it has accumulated so far in the summer month par excellence.
The Ibex reached 18 sessions, closing above the previous day’s low
This is too vertical a bounce as demonstrated by the fact that there were up to fifteen sessions of ascending recording according to the Eastern Candlestick Theory and from 10-12 recordings, this theory indicates that “The risk that there will be a correction at any time that would serve to digest this increase is very high”explains Joan Cabrero, technical analyst and strategist at eco-retailerwhich shows that the current market situation encourages more people to think about harvesting the accumulated profits since, in the midst of the stock market crisis, he advised subscribers not to panic and not to close their positions on the stock market.
“My suggestion is to be aware that Sooner or later the joy we have will be quarantined and that is when the Spanish stock market will have to rise, not now in the middle of a whirlwind of purchases,” he explains. “Until there is a drop to 10,800 points, I do not plan to buy more Spanish stock markets,” he says.
“I doubt that the current rise can overcome the resistance without first digesting or consolidating part of the increases”
In Europe, the situation is similar to that of the Spanish index, although with nuances. The EuroStoxx 50’s August gains are less than a percentage point, after reaching the lowest rebound, at 7% from the lows of the month.
However, the upward momentum of recent weeks led the continental index to exceed 4,900 points at the close of last week. trading near the resistance of 4,985/5,000 points“which is the 78.60% Fibonacci recovery level of the entire last fall from the highs of the year at 5,121 points and a psychological level,” explains Joan Cabrero.
“I highly doubt that the current rally can overcome this resistance zone of 4,985/5,000 points without first digesting or consolidating some of the rally. I would not be surprised to see a correction in the coming sessions and the optimal is to wait for new purchases for this decline to form, correcting or consolidating at least half or 38.20% of the previous rebound.without having to wait for a fall to 4,400 integers,” underlines the analyst who marks between 4,985 and 5,000 points as the zone in which he would not be surprised to see a correction.
“The ideal is that they wait for new purchases so that this decline is formed, which corrects or consolidates at least half or 38.20% of the previous rebound, without having to wait for a fall to 4,400,” explains the strategic director of Ecotrader.
In this context, given that the current rebound is still fully alive but with the certainty that the best time to make new purchases has already passed, it is the right time to review the key levels of some of the most emblematic values of the Ibex 35, with the aim of identifying where would it be optimal to collect profits -even if only partially- to resume position when the situation is more favorable to investment.
If someone bought shares in the entity chaired by Ana Patricia Botín while the stock markets had to digest the daily collapse of 12% of the Nikkei and on the cover of the economist It was pointed out that the bags have reached their purchasing area, it is a good time to start thinking about harvesting some of what has been planted.
The one who bought then can think of reaping the profits accumulated in the field of 4.60/4.70 euros to subsequently return 10% below said level, near the 4.28/4.30 euros.
According to the market consensus, 70% of analysts consider the shares of the Spanish financial company attractive, for which a net profit of around 11.7 billion euros at the end of the year5% more than that accumulated in 2023.
The textile company has experienced a vertical rebound in recent weeks that has brought it closer to the market resistance zone. 50 euroswhere you could reap profits. If you ask me if now is the time to buy, the answer is: no.
To buy this type of stock, you have to be patient and wait for a consolidation to form, in the area of 46/47 euros to return to a title that defines a clear and impeccable uptrend and which, in fact, is trading near its highest level in history.
This is not surprising, considering that by the end of the year, its net profits should be close to 6 billion eurosits historic record, predicting growth of almost 10% in this area.
The technically managed bullish target of the Spanish national airline (almost historically) is in the area of 2.5 eurosclose to the peaks it reached in 2021.
The distance between this level and the levels in which the value evolves is about 20%, so it is unlikely that it can approach this level vertically.
The ideal would be to generate profits in the field of 2.25 euroswhere he encounters increasing resistance to buy it back near the 2.05 euros.
Meanwhile, IAG continues to attract the attention of analysts, who had not viewed the Anglo-Spanish holding company in such a favorable light since before the spread of Covid-19 and the adoption of the corresponding measures to avoid its contagion, which represented a turning point. point. later in your quote.
This is the best example of a stock in which one can collect the profits accumulated in recent weeks to try to make the most of a strategy on it later, when its shares have corrected part of the overbought accumulated so far. Since eco-retailer It was decided to open a bullish operation on the Spanish technology company on August 8, when it was listed on the stock exchange. 56.25 euros.
Now, after accumulating profits close to 9% thanks to this strategy, you can start thinking about selling when your shares reach the 62.5/63.5 eurosto be able to buy back its shares if its consolidation deepens to 58/59 euros.
In this environment, the title can form another bullish segment and go in search of the objective that it has had between its eyebrows for three years at its historical highs, in 78-80 euros.
If you are wondering where to place your purchase orders to reposition yourself within the Spanish oil company, the optimal area would be around 11-11.50 euros.
A fall towards the 11.20 euros would mean reaching the 38.20% Fibonacci retracement of the entire previous rally in recent years, which led to the stock 4 At 15.65 euros.
A market correction that would bring the stock back to that level would leave the company led by Josu Jon Imaz in a favorable position to buy.
This week, Repsol reversed the sale of its subsidiary in Norway, Repsol Norge AS, and is still waiting for a rebound in gas and oil prices that would support a rebound in its price.
