After accumulating only four days of timid decline over the last three weeks, the Ibex 35clearly indicated yesterday the need to digest the accumulated profits. And even more, by being close to a psychological resistance as important as that of 12,000 points.
“It is normal that it encounters some difficulties in continuing its rise in search of the 2009 peaks in the 12,240 pointswhich will likely exceed,” says Joan Cabrero, technical analyst and strategist at eco-retailer in this sense.
Indeed, the expert explains that a possible short-term consolidation of the Ibex 35 will not alter its short-term bullish possibilities as long as it does not close the gap that it has opened since the 11,792 points. “If it closes this gap, for which it should close below the 11,766 points I fear that we may see a return to seeking support in the area of the former resistance of 11,465 points“, he explains, but in the meantime, the bulls’ options remain intact.
Levels to watch in Europe
The declines of the last hours on the European stock market have once again put on the table the need for many selective investors in the region to take a bullish break after the last few weeks of gains. However, the market situation remains clearly bullish.
Therefore, since eco-retailer we remember that any consolidation or pullback to 4,900 points It would be attractive to investors interested in increasing their positions in the European stock market with a better risk/return equation.
“I would do it behind the wheel of a stop linked to the fact that the EuroStoxx 50 did not lose the September lows in the 4,732 pointswhich is a support that we must no longer lose if we want to continue to have confidence in a bullish context in the medium term”, explains Cabrero, who underlines that “the lows of September continue to be the yellow line or dividing line that separates a bullish context from a potentially bearish context towards the red line which are the August minimums in the 4,473 points“.
