The consolidation of recent days has brought the EuroStoxx 50 closer to the base of the channel which has been limiting the upward trend for two years. The support of 4,675/4,700 points He stayed a few moments of the week less than half a percentage point of drilling. A situation to watch because at these prices “you have to think more about buying than selling on the European stock market”, as Joan Cabrero, technical analyst and strategist at eco-retailer.
“The only thing that bothers me is that The German DAX 40 is about to confirm a bearish trend in the form of head and shoulders which would open the door to an additional drop of 4%”, estimates the expert from the investment strategies portal of elEconomista.esthis pattern would surely be confirmed if he lost the 18,900 points.
“If the Ibex 35 could still fall to 10,900/11,130 points and the DAX 40 is heading towards the September lows around 18,200 points, I’m afraid that “The EuroStoxx 50 could end up looking for August lows around 4,420/4,480 points”said the expert.
Of course, the loss of support for the DAX 40 and the additional drop of 4% that would follow would represent a magnificent redemption opportunity on the European stock market with a much more attractive return/risk equation than a few weeks ago. “If we have this fall, it is likely that we will have Christmas rally” says Cabrero.
The “push” of the Ibex 35
The loss of the supports that had limited consolidation in recent months has accentuated the threat of greater consolidation in the Spanish equity market. “No one can be surprised that the Ibex 35 abandons short-term positions; in fact, in the worst case scenario, it could seek 10,900/11,000 pointsbut it remains to be seen whether the intermediate support of 11,138 points, which are the September lows, manages to stop the fall.
“Operationally, if you ask me where I would be in favor of a new takeover of the Spanish stock exchange, I would tell them to wait for the 10,900/11,138 points. If this fall were to take shape, I would be in favor of taking advantage of it to buy Christmas gifts since the uptrend that has guided the increases since the 2022 lows crosses this range.
