- The Ibex 35 in Spain has been somewhat quiet over the course of the last 5 or 6 trading sessions, but this needs to be taken into the overall picture of a market that had shot higher for some time.
- Ultimately, this is a market that I think is trying to work off a lot of excess froth, and it is also worth noting that Spain is a little bit more volatile than some of the other countries in the European Union.
After all, if you are looking for more of a stable market, you probably want to look at the DAX in Germany, or at least the CAC in France. However, if you are looking at a bigger move in the EU, Spain is a great place to start. The market has outperformed most other indices for a while now, so the last week or so of consolidation isn’t something that you have to worry about for something bigger. After all, it was just a few weeks ago that we were €500 below where we are now.
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It’s worth noting that the IBEX 35 index recently had formed a bit of an ascending triangle, and it makes sense that we may trying to continue to go higher of the longer-term, but we may need a little bit of a pullback or at least sideways action in order to offer enough perceived value for traders to take advantage of. The market will continue to be one that is very noisy, but also can really give you a lot of alpha in comparison to some of the other major indices.
The 50-Day EMA sits just below the €11,000 level and is rising at a very sharp angle. This means that the momentum is most certainly with the market to the upside, and I think that continues to be a major factor here. With that being said, I like dips as buying opportunities, especially near the €11,150 level, an area that is the top of that ascending triangle that we recently broke out of. For a target, I believe it makes a lot of sense that we go looking to at least the €12,000 level, but it may take a bit of time to get there.
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