Watch-out España traders, the IBEX is challenging the major key long term sideways resistance or ceiling. Typically, in sideways markets, we expect price to reverse to the downside. However, this time might be different, as the price test the level for sixth time. The latest test(March 2) was followed by a minor pullback and a bullish pin bar.
I would think twice before going short at that resistance for now. why? For the first time , the ECB is pumping money for free with its new asset purchase program. History and the FED have taught us what happens to equities when central banks go full throttle.
We might see a reactive correction but i advise waiting for a candlestick confirmation for such scenario and look only for limited downside potential.
A breakout above 11235 resistance with at least a weekly closing would confirm the bullish breakout. I wont suggest targets for this scenario as this idea is just a general opinion...
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I would think twice before going short at that resistance for now. why? For the first time , the ECB is pumping money for free with its new asset purchase program. History and the FED have taught us what happens to equities when central banks go full throttle.
We might see a reactive correction but i advise waiting for a candlestick confirmation for such scenario and look only for limited downside potential.
A breakout above 11235 resistance with at least a weekly closing would confirm the bullish breakout. I wont suggest targets for this scenario as this idea is just a general opinion...
------------------------------------------------------------------------------------------------------------------------------------------------------------
Be one of the first members of my new trading portal, check my new website thefxchannel.com/ , vote and subscribe. Thank you
Good luck, keep your stops tight..
twitter.com/thefxchannel
www.facebook.com/thefxchannel
plus.google.com/+Thefxchannel0
My best regards
Technician