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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Bought the recent dip. Watching this one intently. This will be a nice earner either way :) Don't forget elections in June with Pademos as top contender.
elp
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Spanish politicians are pulling out all the tricks to make themselves look good. # PP and PSOE. Usually before an election they will start projects to have the illusion of economic activity. Which is the case currently. With the ECB's current QE program, Spain will have more funds to boost the illusion of economic activity. "Tin foil hat on" eurozone leaders don't want another Greece on their hands, so money could continue to flow into Spain and help bolster the Spanish economy.
riskfirst
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Thanks Technician, I'm long from the PB's nose (rejection of 10901 and 50% Fibo).