After twenty-four sessions of consolidation of lateral positions between the 11,560/11,600 and the 12,000 integersthe Ibex 35, has cryptically approached the lower part of this range during the last sessions, to the point of being less than 1% of said support during the day yesterday.
In fact, “during this Wednesday’s session, this support was hammered (hammer-shaped candle) which reinforces the importance of the level”, explains Joan Cabrero, technical analyst and strategist of eco-retailerwhich emphasizes that “there will be no technical evidence warning of the possibility of a decline that may be sustainable over time as long as it does not lose this range”.
“The Ibex 35, for the moment, is holding up hammer blows selling pressure, and everything indicates that if it continues like this, it is only a matter of time before it ends up exceeding the 12,000 pointsto try to overcome the next obstacle which will be found in the maximums established in 2010 in the 12,240 points” says the expert.
In Europe, for its part, this Wednesday it tested the support it presents in the 4,900/4,870 pointsthis Wednesday. We will have to see if this Thursday, where we have an appointment with the October monthly close, the main European reference manages to maintain itself on this support.
“There will be no news from a technical point of view until EuroStoxx 50 remains on this support”, reassures Cabrero, but “If it ultimately loses this range of levels, we could see a broader consolidation phase, similar and proportional to the last consolidation phase before the August crash.“.
THE bear have taken control of the stock markets in the last few hours after the declines observed yesterday on Wall Street, where growth data for the American economy were published, which show great strength and of the Federal Reserve with interest rate cuts.
