The IBEX 35 in the weekly chart has registered a slightly negative week and the selling pressure remains in force for another week. Something that can be seen through the price reading thanks to «the highs and lows that are decreasing. Simultaneously, we have a wide upper shadow in relation to the range. This means that, from the best moment of the week that the index advanced 2.63% from the highs of 17,503 points, it had a turning point favorable to sales and has developed corrections of around 3% to current levels.»
Therefore, That broad shadow continues to reinforce the rebound in volatility that we have mentioned in recent weekssomething that can be seen in the histogram (red color) where the greater the range, the greater the dispersion of opinions and, therefore, the more nervousness on the part of market participants. All of this, furthermore, seasoned by a rebound in hiring levels.
For his part, the MACD weekly maintains active downward cuts and extreme overbought zones. Therefore, “we consider, for another week, that the corrective process, with a spike in volatility, remains in force until the price demonstrates the opposite.” And as long as we do not see, at least, weekly closings above the previous zone of floors – now ceilings – at 17,240 points, «we will not begin to see some recovery or stabilization in the face of the very short-term spike in volatility.»
“As long as this does not happen, and although the 30-week simple moving average has allowed money to come in, we understand that the perforation risk of this 30-week average remains in force” based on the increases in volatility levels and contracting levels, respectively.
A level of nervousness that «could carry out additional corrections towards the next most important support, perfectly projected around 15,763 and 15,724 points. So we continue, therefore, prioritizing in the short term the maintenance in time and form of nervousness among market participants in the IBEX 35 as long as it does not register a weekly close above 17,240 points,» he concludes.
See the technical analysis of all the Ibex 35 values