The strong dynamics in which the main equity indices of Europe have been involved in recent weeks allowed the major indices to aggressively approach the first goals set for them when the rebound began at the end of October .
Rumors pointing to a faster cut in interest rates next year favor the development of the European and American side, while in Asia, aid policies for the Chinese real estate sector are beginning to be considered, the favoring companies in the development sector. stock markets in the area in the last few hours.
Resistances such as 4,500 and 4,600 points of the EuroStoxx 50 are only 3.50 and 6.50% respectively. Something that “is less interesting is where the highs of July and the growing resistance that comes from joining the highs of 2015 and 2021,” emphasized Joan Cabrero, technical analyst and strategist at Ecotrader.
“In this environment I will not be surprised if we see a stop on the road,” warns the expert, pointing out that it is necessary to clean up the overbuying and consolidation in part of the latest increase and that, operationally speaking, it can be seen as “a new opportunity to buy the European stock market again”, because now the risk-return equation is not attractive to stop at a greater distance than the goals.
Ibex returned 11% from the bottom
In the case of the Ibex 35, the situation is the same. The Spanish selective gathered a revaluation of 11% from the low reached on October 26 at 8,879 points to the highest reached this Monday at 9,847 points. In fact, the national index set a new high for the year and is a stone’s throw from the goal of being between its eyebrows in the months of recovery levels where it traded before the Covid, at 10,100 points.
“Before this goal I suggest that you watch the ceiling of the channel that I have drawn for many months, which is now visible at 9,930 points, very close to the psychological resistance of 10,000 integers. In this environment I would not be surprised if we could witness a bullish pause,” explained Cabrero while pointing out that this movement would allow the stop level to be raised (and make the risk-return equation more attractive) or eliminate the overbought.