Will IBEX 35 Go For A Higher High? | Technical Analysis
After reversing higher in mid-July, the Spanish IBEX 35 index started climbing higher, while trading above a short-term tentative upside support line taken from the low of July 19th. Although there are indications that the price could move further north, we would still prefer to wait for a pop above the 9013 barrier first, which is the current highest point of August. Until then, we will take a somewhat positive approach.
If, eventually, IBEX 35 breaks above the 9013 barrier, this will confirm a forthcoming higher high, possibly clearing the way towards higher areas. The index could travel to the 9105 hurdle, marked by the high of June 25th, where a temporary hold-up might occur. However, if the bulls remain strong, they might easily raise the price to its next possible resistance zone, at 9184.
The RSI and the MACD have just started pointing slightly to the upside. In addition to that, the RSI is still sitting above 50 and the MACD continues to run above zero and its trigger line. Both indicators show positive price momentum, which supports the scenario mentioned above.
Alternatively, if the Spanish index breaks the aforementioned upside line and then falls below the 8848 hurdle, marked by Friday’s low, that may spook the remaining bulls from the arena for a while. IBEX 35 could fall to the 8805 obstacle, or even to the lows of August 3rd and 4th, at 8733. If the selling doesn’t stop there, the next possible support target might be at 8661, marked by the low of July 30th.
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