Today’s post focuses on the Spanish index IBEX 35. If you‘ve been following us in twitter, you would have seen our last bullish signal from the breakout of 8155-200 level. Now at 8650 we have to be cautious for two reasons. Firstly, prices trade very close to the support by the upward sloping trend channel as shown in the chart below.
If the yellow trend line is broken, a sell signal will be given with targets shown above as the support areas. If prices continue higher without breaking support, resistance is found in the area of 8850-9000. That resistance area is very important regarding the intermediate and longer term trend. Why? Because the resistances in that area are created by the longer term trend lines. This could be seen at the weekly chart below.
It would be a huge win for the bulls if IBEX manages to overcome that resistance level.
Disclosure: None of the information or opinions expressed in this blog constitutes a solicitation for the purchase or sale of any security or other instrument. Nothing in this article constitutes investment advice and any recommendations that may be contained herein have not been based upon a consideration of the investment objectives, financial situation or particular needs of any specific recipient. Any purchase or sale activity in any securities or other instrument should be based upon your own analysis and conclusions.
If the yellow trend line is broken, a sell signal will be given with targets shown above as the support areas. If prices continue higher without breaking support, resistance is found in the area of 8850-9000. That resistance area is very important regarding the intermediate and longer term trend. Why? Because the resistances in that area are created by the longer term trend lines. This could be seen at the weekly chart below.
It would be a huge win for the bulls if IBEX manages to overcome that resistance level.
Disclosure: None of the information or opinions expressed in this blog constitutes a solicitation for the purchase or sale of any security or other instrument. Nothing in this article constitutes investment advice and any recommendations that may be contained herein have not been based upon a consideration of the investment objectives, financial situation or particular needs of any specific recipient. Any purchase or sale activity in any securities or other instrument should be based upon your own analysis and conclusions.