Can IBEX 35 Continue Rising?

by Darius Anucauskas
12:09, 2020/10/08

For the past couple of weeks, IBEX 35 is seen trying to recover its losses made in September. The index is currently balancing well above its short-term tentative upside support line taken from the low of September 25^th. That said, the price is trading slightly below the psychological 7000 mark and the 200 EMA on the 4-hour chart. Although there is a chance for IBEX 35 to move further north, in order to get a bit more excited with that idea, we would like to see a break above the 7010 barrier, marked by an intraday swing low of September 17^th and today’s current high. For now, we will remain somewhat bullish.

A strong break above that 7010 barrier would also place the price above the 200 EMA, what some new buyers could see as a positive and step in. If so, the index may end up testing the 7100 obstacle, or the 7156 hurdle, marked by the highest point of September. IBEX 35 might stall there temporarily, or correct a bit lower. However, if it stays above the 200 EMA, new buyers could take advantage of the lower price and push it up again. That’s when the index may touch the 7156 zone again, a break of which might set the stage for a move towards the 7215 level, marked by the high of August 25^th.

The RSI is currently flat, but remains well above 50. The MACD continues to point higher, while floating above zero and its trigger line. The two oscillators suggest that the price momentum is still positive, which may support the above-discussed scenario.

Alternatively, if the price drops back below the 6946 hurdle, marked by the current low of today, that could send the index for a larger correction lower. IBEX 35 might then drift to the 6891 obstacle, a break of which may clear the path for a push to the 6850 level, marked by the high of October 5^th. Slightly below that area runs the aforementioned upside line, which could provide additional support for the index.

Disclaimer:

The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. The Group of Companies of JFD, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD prohibits the duplication or publication without explicit approval.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 84.25% of retail investor accounts lose money when trading CFDs with the Company. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Please read the full Risk Disclosure.