Today, the IBEX 35 is seen violating a short-term tentative downside resistance line drawn from the high of March 15th. The Spanish index continues to trade above a short-term tentative upside support line taken from the low of January 29th. Although there is a good indication that we could see a further move north, we would prefer to wait for a break through the 8688 barrier first, which is marked by the current highest point of April. Until then, we will take a cautiously-bullish approach.
If, eventually, the price rises above that 8688 barrier, this could attract more buyers into the game. IBEX 35 might drift to the highest point of March, at 8737, a break of which would confirm a new high for the year, increasing the chances for the price to rise further north, towards the 8840 hurdle, marked by an intraday swing low of March 4th, 2020. Initially, IBEX 35 could get a slight hold-up around there, but if the buyers are still active, the next possible target might be at 8969, or at 9012, marked by the highs of March 4th and 3rd respectively.
Both the RSI and the MACD are pointing higher. In addition to that, the RSI is above 50 and the MACD is above zero and its trigger line. The two indicators show increasing upside price momentum, which supports the above-discussed scenario.
Alternatively, if the price suddenly breaks the previously-mentioned upside line and then falls below the support area between the 8448 and 8465 levels, marked by the lows of March 29th and April 13th respectively, that may spook the bulls from the field, allowing more sellers to join in. If so, IBEX 35 could fall to the next potential support area between the 8268 and 8298 levels, marked by the lows of March 23rd and 25th respectively. If the selling continues, the Spanish index might get pushed to the 8160 level, which is the low of February 26th.
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