Europe’s Stock Markets Want More
Over the last few weeks, day in and day out, the bulls have been taking control of the stock markets in Europe. The Ibex 35 , in fact, has registered its second longest streak of increases this century , after linking up to 11 consecutive sessions in positive , something that has caused one of the least desirable words to begin to fly over the stock markets at this point: ” Vertigo”.
“It is normal that in the resistance environment in which we operate – the EuroStoxx 50 was yesterday less than 1% of its first great technical stumbling block -, the buying pressure begins to feel a certain vertigo , as perfectly reflected by the candlestick line in the shape of a shooting star that was displayed yesterday by the European index par excellence “, explains Joan Cabrero, technical analyst and adviser at Ecotrader who clarifies that this candlestick suggests the possibility of witnessing some consolidation of part of the last rises before see greater adventures and an attack on that resistance of the 3,855 points .
However, continental parks do not even want to hear about vertigo . At least for now and they already have their sights set on that resistive zone, since above it there would be no other resistance until 4,025 points , where is the level that must be overcome in order to think of something more than a simple bounce.
In this sense, the Ibex 35 continues to take new steps to ward off any signs of vertigo . Yesterday, the Spanish selective managed to beat last week’s highs of 8,453 points , “which is a clear sign of strength that distances downside risks and raises the possibility of witnessing a new attack on the medium-term resistance of 9,000 integers , which is where the bearish guideline runs that arises from uniting the highs of June and November 2021 and the highs of last May,” says Cabrero.
In the short term, yes, the Spanish selective has already recovered the 61.80% Fibonacci and is one step away from the resistance of 8,600 points , which corresponds to a recovery of 2/3 parts (Dow Theory) of the entire the last fall he recorded. That is why it would not be surprising if we see a consolidation of the latest rises in the coming sessions , before moving towards attacking 9,000 integers .
The Nikkei, in positive in the year
The Japanese Nikkei adds a new rising session that allows it to consolidate its positive annual balance. The selective Tokyo has reaped gains of more than 2% since the beginning of January and has become one of the few indices to have made gains since then. In fact, among the floors of developed countries, only the British FTS 100 manages to enter that select club .
The annual gains of the Japanese indicator, yes, are accompanied by a bearish behavior on the part of its currency, which leaves more than 4% against the euro in 2022, which means that the continental investor would have to wait even a little longer to see your investment positive if you had made it on January 1.
Sophia Tesfaye is one of the highly experienced employees among the staff at the The Conway Bulletin News portal. Sophia handles our Finance and Technology column. She is an immensely knowledgeable person. She loves reading books, and by book, it means of all the genres. Maximum of the time she is found in the office library searching for topics for her articles. She is an excellent team leader and unique in her ways.
