THE 12,000 points of the Ibex 35are presented, especially in recent weeks, as an insurmountable barrier at the end of the day for the Spanish selection. The index attempted to close above this level three times in recent sessions and failed to do so. And, in addition to technical resistance, psychological reasons help ibexes not to exceed this level in the long term.
Despite everything, “at present, I do not detect any technical evidence that warns of the possibility of witnessing a setback that could be lasting over time, so everything indicates that it is only a matter of time before that the Ibex 35 will eventually exceed 12,000 points to try to overcome the next obstacle that you will find in the maximums established in 2010 in the 12,240 points“explains Joan Cabrero, technical analyst and strategist of eco-retailer.
Indeed, the expert assures that there will be no worrying sign of bullish exhaustion as long as the Ibex 35 do not lose the support it presents in the 11,560 pointsthis is where the last consolidation of the Spanish selection stopped.
In Europe, the EuroStoxx 50 continues to test the strength of the support represented by the lows it marked last week in the 4,900 points.
“The transfer of these minimums would confirm the loss of the upward trend which had guided the increases since the lows of the panic session of August 5,” explains Cabrero, warning that “If that happens, I fear we will see a broader phase of consolidation.”
The good news is that this broader consolidation does not change the technical situation of the index, which will remain the case until the EuroStoxx 50 loses the September lows 4,730 pointsthis is where the support is found that must not be lost if we want to continue to have confidence in a short/medium term bullish context.
GDP surprises in China: its stock market attenuates its weekly losses
The Asian session is over, a few moments from its close with increases in the region’s main indices. Chinese Indices See Rises of More Than 1 Percentage Point After Report the country’s GDP data, which shows growth of 4.6% (a tenth above what the market consensus expected), and additional details released on the bank’s share buyback program center of the country -a refinancing mechanism with an initial payment of $42.1 billion-.
These two dynamics encouraged the stock markets Red Dragon and helped them mitigate the weekly losses accumulated over the other four sessions. The country’s industrial production and retail sales figures also beat analysts’ estimates.
