Monday, July 4

Ibex 35: next level at 7,992 points

The Ibex 35 opens the session with a wide gap to the downside and loses the support zone between 8.252 / 8.210. Bad news, the index fails and fails to bounce in the short term when conditions were quite favorable: oversold, volume, seasonality and a favorable environment.

The technical indicators of the premium zone that are designed to follow an uptrend begin to set off alarms. The percentage of Ibex 35 shares that manage to approve with the indicators is less than 50% (only 11% bullish and 37% in consolidation); a circumstance that had not happened since the vaccine was approved.

Ibex 35 on daily chart with Average Amplitude Range in Percentage, Slow Stochastic and Trading Volume

Graphical analysis Ibex 35 as of December 20, 2020

In the short term, the breakdown of support significantly blurs the probability that we will attend the famous “Christmas rally”. While the index does not exceed 8,311 points and breaks with the downward dynamics that starts from annual highs, the moment is clearly negative and the composition favors further falls. The next level of support or support is established around the control zone that stands at 7,992 points; blue dashed line drawn on the top graph.

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