José Antonio González, market analyst at Investment Strategies, highlights that the IBEX 35 is an index that continues to meet our expectations or our central or main scenario, that is, the recording of new annual highs and, therefore, new historical highs. Specifically, this week we have marked a new annual and historical maximum at the level of 17,833 points, in a context in which, despite extremely overbought readings accumulated by the weekly MACD, warning sign that we have been commenting on in recent weeks, even in recent months and quarters, this is not an argument that justifies selling or going against the trend, currently clearly dominated by purchases.
Therefore, it is a warning signal that is there, it remains in force, but what always matters is the evolution of the price chart, which develops with that sentiment, that positioning of investors, with the price setting new highs and extending both in time and form the strongly bullish, secondary or medium-term process. Consequently, we maintain a clear constructive attitudeconsidering that the most likely thing for next week is the recording of new annual and historical highs above 17,833 points.
The warning signs that we continue to monitor are that the price begins to show exhaustion due to purchases and, in this sense, until we see weekly candle closings below the secondary or medium-term growing guideline, which starts from the beginning of April 2025, we will continue without having anything minimally objective and solid with which to work a change in sentiment, at least in the very short term, on the part of investors who operate the IBEX 35. We would even add that support of 17,076 points as another important level to watch.
Therefore, as long as we do not have the perforation, with weekly candle closings, below these references, we continue to consider that the risks of a very short-term correction in the IBEX 35 remain completely limited. Furthermore, as we usually comment in the latest market reports, in this case the review of the IBEX 35, Even if we had an IBEX 35 piercing, at the weekly candle close, the support levels mentioned above, we would not see it as something especially problematic either.since, in turn, it would allow extreme overbought readings to be purged and, thanks to this strongly growing structure that starts from the lows of early April, the corrections would continue to be totally proportional both in time and form.
In other words, a correction that, if – I insist – were to occur, we would even see as something healthy to purge the excesses accumulated in recent quarters. For now, we insist, we do not get ahead of ourselves and we continue to consider that the most likely thing in the coming weeks is the recording of new annual and historical highs above 17,833 points, with that psychological level, that goal of exceeding 18,000 points on the IBEX 35 for the first time in history.
Technical analysis of all Ibex 35 companies