Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Chart Of The Day: Spain’s IBEX About To Play Catch Up With Surging EU Stocks? 

By Fawad RazaqzadaStock MarketsAug 06, 2021 08:27AM ET
www.investing.com/analysis/chart-of-the-day-spains-ibex-about-to-play-catch-up-with-surging-eu-stocks-200596685
Chart Of The Day: Spain’s IBEX About To Play Catch Up With Surging EU Stocks? 
By Fawad Razaqzada   |  Aug 06, 2021 08:27AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

This article was written exclusively for Investing.com

European equity indices are continuing to make good progress thanks mainly to the ECB’s ongoing stimulus measures and a recovering world economy boosting demand for European goods and services. But with demand for travel and tourism not as strong as had been hoped for earlier in the year—due to the Delta variant of COVID-19—not all EU indices are hitting record or multi-year highs. Spain’s IBEX, for example, dropped sharply during June and July, when Delta cases were rising rapidly. However, the IBEX has started August on a positive note and so it may be able to play catch up with the rest of Europe and rise more strongly going forward.

The gains for European equity indices have been led by the DAX, although the German index has remained in consolidation mode near its record highs for the best part of three months now. This has allowed some of the other EU indices to play catch up with both the French CAC and Italian FTSE MIB surging noticeably higher since mid-July. The large cap European stocks (including those of the UK) have performed the best. This has caused the European STOXX 600 to hit repeated all-time highs:

STOXX 600 Daily
STOXX 600 Daily

In contrast, however, the IBEX has underperformed badly as it remains well below its 2020 high (unlike nearly all other major EU indices):

IBEX Weekly
IBEX Weekly

However, the Spanish index looks like it may have ended its bearish run and may be about to break higher after forming that bullish piercing weekly candle a couple of weeks ago.

Meanwhile, the daily chart shows the index is holding tightly below resistance around the 8830 area after bouncing back strongly from its rising 200-day moving average in July:

IBEX Daily
IBEX Daily

Thursday’s bullish-looking close certainly looks strong. 

From here what I would be looking for is a clean break above the 8830 resistance, which is needed before the bulls eye the Fibonacci retracement levels shown on the chart, ahead of the June’s peak at 9318 thereafter.

However, if resistance holds and the index falls back below the recent support zone circa 8700, then this would be a short-term bearish development, in which case the bulls must wait for fresh signals before potentially stepping in.

All told, the positive macro backdrop (ECB support) and technical outlook both point to rising levels for the Spanish IBEX. 

Chart Of The Day: Spain’s IBEX About To Play Catch Up With Surging EU Stocks? 
 

Related Articles

Chart Of The Day: Spain’s IBEX About To Play Catch Up With Surging EU Stocks? 

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (2)
Dennis Tiv
Dennis Tiv Oct 09, 2021 6:32PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
OLORUNJU JOHNSON
OLORUNJU JOHNSON Aug 08, 2021 3:05AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Good morning
Dennis Tiv
Dennis Tiv Aug 08, 2021 3:05AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email