Today’s post focuses on the Spanish index IBEX 35. If you ‘ve been following us in twitter, you would have seen our last bullish signal from the of 8155-200 level. Now at 8650 we have to be cautious for two reasons. Firstly, prices trade very close to the support by the upward sloping trend channel as shown in the chart below.
Now if the yellow trend line is broken, then a sell signal will be given with targets shown above as the support areas. If prices continue higher without breaking support, resistance is found in the area of 8850-9000. That resistance area is very important regarding the intermediate and longer term trend. Why? Because the resistances in that area are created by the longer term trend lines. This could be seen at the weekly chart below.
It would be a huge win for the bulls if IBEX manages to overcome that resistance level. For more help trading this index become a member and follow us on the exclusive membership tweets.
As always, thank you for taking the time to read my new post.
A price movement through an identified level of support or resistance, which is usually followed by heavy volume and increased volatility.