In it weekly chartwe can observe that the IBEX 35 is close to completing a doji candle, a pattern that usually indicates uncertainty regarding the continuation of the upward trend, at least in the short term. This doji candle appears after several consecutive weeks of increases, which reinforces the possibility that the index will be close to a consolidation period. A similar pattern was formed last June, after a bullish rally since the minimum of February; On that occasion, the Doji formation was followed by a consolidation during later weeks. Therefore, this historical pattern leads us to prioritize the possibility of consolidation in the coming weeks for IBEX 35.
The first level of relevant support is located at 12,664.60 pointscorresponding to the minimum registered last week. If the price drills this level, the index is likely to approach the 12,153.60 points. In addition, the maximum of the end of January, around 12,465.60 points, also acts as a key support level.
In it Daily graphwe observe the formation of a technical distribution figure, in the form of “shoulder-shown-hombro”. This figure, which implies a bearish bias, will be confirmed if the index falls below the 12,878.90 points. If activated, it could be the beginning of a consolidation phase after the remarkable bullish rally of 16.3% from the minimum of December 20.
In the event that the IBEX 35 crosses a healthy consolidation, it would be a positive process for the market, since the MACD indicator is currently at extreme overwhelming levels, which suggests that it could be close to a downward turn. The consolidation could carry the price towards the first support in the 12,664.60 pointsas mentioned in the weekly analysis.
In addition, the 38.2% fibonacci recoil level is around 12,454 pointswhich represents an approximate objective for healthy consolidation. This would imply one Fall of about 3.75% from current levelswhich could be considered a healthy correction within a broader upward trend.
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