The daily chart of the IBEX 35 index shows that after a sharp decline experienced in the beginning of this week, the price is now slowly grinding higher, trying to recover some of its losses. At the same time, the index is still trading below a short-term tentative downside resistance line drawn from the high of December 9th. If that downside line stays intact, IBEX 35 could fall again. Hence our somewhat bearish approach, for now.
A small push further north could bring the index closer to the aforementioned downside line, which if manages to hold the uprise, may force the price to slide again. If so, IBEX 35 might drift back to the 7864 zone, marked near the low of November 19th and the high of December 21st. If the slide continues, the next potential target may be the current low of this week, at 7658.
The RIS is currently pointing slightly to the upside and sits fractionally above 50, showing that the indicator is slightly in the bullish territory. The MACD, on the other hand, continues to point lower, while sitting a bit above zero, but below its trigger line. The two oscillators are somewhat in support of the idea of seeing a small push higher and then a possible reversal lower.
Alternatively, if the aforementioned downside line breaks and the price moves above the 8220 barrier, marked near the highs of December 2nd, 3rd and 14th, that may open the door for a further move higher. If so, IBEX 35 could end up traveling to the current highest point of December, at 8313, a break of which would confirm a forthcoming higher high and send the index to the next possible resistance LEVEL, AT 8541. That level marks the low of March 2nd and the high of March 6th.
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