José Antonio González, market analyst at Investment Strategies, points out that both the maximums and minimums are increasing compared to the maximums and minimums of the previous week, and we even have the opening of a bullish gap at 18,164 points.
All of this is also accompanied by an increase in contracting activity and, therefore, the central scenario that we contemplated is fulfilled: the recording of new annual and historical highs in the IBEX 35.
Looking ahead to the coming weeks, we continue to consider that it is most likely that the main stock market indicator of the Spanish market will continue to register new annual and historical highs above 18,573 points. The reason is clear: We have absolutely nothing, no argument, that makes us think otherwise.
Yes it is true that we count with extreme overbought readings accumulated by the weekly MACDbut these readings are only a warning sign and never a justification, in and of themselves, for making investment decisions. The market, therefore, extends the underlying bullish process in a timely manner and, in addition, we do not observe downward cuts in the weekly MACD, there are no relevant increases in volatility and the price remains clearly above important supports.
So, as long as we do not see weekly closings below 18,164 points —corresponding to the bullish gap—, as long as there are no weekly closings below the growing guideline that starts from the lows of early April 2025 and as long as we do not see, of course, weekly closings below the last rising minimum, located specifically at 17,581 points, We will have absolutely nothing to work with the start of some type of tertiary or short-term correction.
But the thing is that, even if all these conditions were executed and we considered the beginning of a short-term correction in the IBEX 35, we would not view it with bad eyes eitheras it would allow or enable the weekly MACD oscillator itself to begin purging extremely overbought readings.
Therefore, the background scenario, both in the medium and long term, allows maintaining a clear positive bias, even for the coming weeks.
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