Challenge Of The European Stock Markets Project1199 At Weekly Closing. The color red has been imposed in recent sessions in the main stock exchanges of Europe in the face of threats to the economic outlook that have been encouraged in recent hours , such as high inflation and regional outbreaks of coronavirus.
The days of losses in selectives such as the Ibex 35 have followed one another over the last week until they led the Spanish index to yield the first levels of support it faced in the short term.
The Ibex 35, in fact, pierced the 8,600 point level yesterday and is now ready to replicate the correction seen in January, when it fell to 7,713 points. “It has opened the door to a fall to the support of 8,500 points , which is the one that we already warned dates ago could be reached,” says Joan Cabrero, technical analyst and advisor to Ecotrader .
It is precisely at that level that the Spanish index plays a large part of its future. If it yields 8,500 points, we should think about the possibility of seeing a fall towards 8,180 points , in what would be the 38.20% Fibonacci adjustment of the entire last major bullish movement that was born at the lows of last October.
“The latter would fit with a bearish context in the EuroStoxx 50 in search of the May lows at 3,855 points, ” says Cabrero, who emphasizes that “the risk up to that Ibex support is 4% while the potential The reward for purchases made at current levels would be the achievement of objectives that we manage in the 10,100 of the Ibex 35, which are at 18.80% “. In other words, the potential of the Ibex already quadruples the risk of a fall
In the case of the EuroStoxx 50, the level to watch after demonstrating in recent sessions its inability to break the 4,100 point level is the one at 3,855 points , which “we would continue to see as an unbeatable opportunity to buy European equities in search of a bullish final stretch of the year towards objectives of 4,575 points, “highlights Cabrero.
Gold and oil, heads and tails
Caution prevails in the commodity market in the last session of the week. However, despite the slight variations on Friday, the weekly balance does show interesting movements. While the barrel of oil is one of the losers of the last five days, accumulating in that period of time a decrease of close to 3% in its European reference , the ounce of gold recovers some shine and adds his fourth consecutive week of promotions