THE red numbers and the ups and downs observed in the market over the last few sessions have put investors and analysts on alert, bad habits after the September rally to continue the market’s gains. However, you have to be completely calm and have a bias bullish tradingat least if we technically analyze the situation of the main European stock markets, which not only remain above the main supports that must be monitored so that the market dynamics are not lost, but also resist above the key levels in the short term.
In the case of Ibex 35it is the domain of former resistance, now support, of the 11,470 points. “Between this support or 11,138 points, which are the September lows, the declines should stop and the uptrend should resume,” says Joan Cabrero, technical analyst and strategist at eco-retailer.
“In the short term, the Ibex 35 is trying to resume the upward trend without having completed the ‘return’ to these levels, so I still refuse to exclude that there could be a continuity of the digestion phase which has started in the 12,000 points and we could see other declines before witnessing the bullish recovery,” warns the expert.
In Europe, “you have to be completely calm and have prejudices” trade bullish as long as the Eurostoxx 50 does not lose the September lows in the 4,732 points” Cabrero said.
At the September lows of 4,732 points, there is still the yellow line or dividing line that separates a bullish context from a potentially bearish context towards the red line, which is the August low in the 4,473 points.
“Therefore,” says the expert, “as long as we are above this yellow line, which today stands at 4.50%, there is no reason to worry about a point from a technical point of view and I will continue to hope that the upward trend continues.” “will be imposed as soon as the current consolidation is completed.”
