The Ibex 35 faces the threat to record its second consecutive week of decline despite the increase of more than 1% that it added yesterday. This is a sequence that has not occurred in the Spanish stock market since markets were spooked in August by fears of an imminent recession in the United States.
Since Monday, the Spanish selective index has been one of the most penalized in Europe and has recorded declines which, although they do not reach 1%, have served to bring the index closer at certain times of the week to the supports that he finds in the minimums. of September.
This is the 11,138 points which, although it is indeed a mid-level, is presented as the last hope of the bulls. And its reach and subsequent rebound from this environment is one of the hopes that bulls have in the index today.
“It can stop the fall”says Joan Cabrero, technical analyst and strategist at eco-retailerwhich nevertheless reminds us that “the threat is that we are witnessing a consolidation on a larger scale which could seek, in the worst case, 10,900/11,000 points“
The threat of a major correction of the Ibex 35 is added in Europe to that of the German DAX 40, which could confirm a downward trend at the weekly close in the form of head and shoulders which would open the door to an additional 4% drop in the German stock market. “This pattern would be confirmed if he lost the 18,900 points which, for the moment, are resisting the decline,” says Cabrero.
In this sense, the push bearish in Spain and Germany, this is what scares the EuroStoxx 50, which is already trading close to the support environment of the 4,675/4,700 points And? fear end up looking for August lows around the 4420/4480 points.
“The good news is that if the DAX 40 loses its support and we see a further 4% decline in the coming sessions, we would face a wonderful opportunity to buy back into the European stock market with a much higher risk-reward equation. bigger than it was a few weeks ago,” says Cabrero. “If we have this fall, it’s likely we’ll have a Christmas gathering that’s easier to enjoy than if we didn’t have this fall,” he says.
