The rebound of the Ibex 35 is limited to 9,425 points

The main stock markets in Europe have rebounded in recent hours due to the expected intervention of Christine Lagarde, president of the European Central Bank (ECB) and after learning of the agreement between the largest banks in the US to execute a joint plan and inject 30,000 million dollars at First Republic Bank.

They have done so in a movement that has served to perfectly stage a rebound of the reference selectives in the Old Continent from their minimum drop target. And it is that, indices like the Euro Stoxx 50 They have bounced from 4,025 points, which was the minimum theoretical drop target that arises from projecting the amplitude of the bearish reversal pattern in the form of a double top that was confirmed after losing the important support of the 4,170 points.

Despite this, “it seems difficult to think that the reach of this support of 4,025 points could be the floor and cause something more than another vulnerable rebound, after which the falls could continue,” warns Joan Cabrero, technical analyst and strategist of ecotrader.

The expert is still waiting for a 38.20% Fibonacci correction of the entire upward movement from the lows of October to the highs of this month of March (from 3,250 to 4,325 points), which would still mean attending a fall towards 3,900 pointswhich is where it suggests “wait patiently for it to be reached before buying”.

And it is that, some selective as the IBEX 35In fact, they have not even reached the required minimum drop.

In search of a reliable floor in the Ibex 35

“To trust the possibility of seeing a bottom, this fall must correct the 38.20% Fibonacci of the entire rise from 7,188 to 9,500 points, which would mean seeing falls towards 8,630 points“, explains Cabrero who, yes, points out that”before falling to that theoretical support I wouldn’t be surprised to see a short-term bounce which in the best of cases could lead the Ibex to try to fill the bearish gap that opened between 9,425 and 9,245 points”.

Despite this, the strategist ecotrader ensures that if it takes shape this rebound “There would be an opportunity to reduce exposure to the Spanish stock market if they did not do so on the rise or are not comfortable with the possibility of attending a deeper correction”.

Disclaimer: If you need to update/edit/remove this news or article then please contact our support team Learn more

Deborah Acker

I write epic fantasy; self-published via KDP. Devoted dog mom to my 10 yr old GSD, Shadow! DM not a priority; slow response at best #amwriting #author.

Leave a Reply