Global stock markets are facing the final stages of August, continuing the upward momentum they have been in since August 6, and have reached – in general – their lowest levels of the last five months.
However, today they face one of the most important days to know if they will be able to maintain this trend in the short term. And today will be known their reaction to the financial results presented by Nvidia, which exceeded analysts’ expectations in almost all areas.
“Nvidia has performed well, but its stock price has fallen due to high expectations for next year,” said Jun Bei Liu, portfolio manager at Tribeca Investment Partners Pty Ltd., speaking to Bloomberg. “This is expected to have a negative impact on the performance of Asian AI stocks due to their close correlationbut its result actually demonstrates continued demand from the sector.
In this sense, in the Eastern region, the day ended today with modest declines that had as main chipmakers Taiwan Semiconductor Manufacturing and SK Hynix Inc. ballasts.
In Europe, the accounts were known with the EuroStoxx 50 attached to the resistance of the 4,985 pointswhich is the 78.60% Fibonacci recovery level of the entire last decline from the year’s highs in the 5,121 points“explains Joan Cabrero, technical analyst and strategist of eco-merchant.
“I very much doubt that the current rise can overcome this resistance zone of the 4,985 points without first digesting or consolidating part of the rise. 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 relapse for the 4,400 whole“, said the analyst.
“Sooner or later, joy will be quarantined”
In the case of the Ibex 35, “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,” explains Cabrero. “Until there is a fall in the 10,800 points “I have no plans to buy any more Spanish stocks,” he said.
On Wall Street, the key level to watch is in the 19,000 Nasdaq 100 pointsThis is where the first support lies that could stop the consolidation in the very short term. Up to this level, there is still a 5% margin for decline.
“Anything below 19,000 points would increase the risk of relapse in the future.” 18,300-18,400 pointsand in this range, we could already think about buying technology again,” they explain on the investment strategies portal elEconomista.es.
