IBEX35 : BULLISH BREAKOUT?- The Madrid stock market has registered a strong rallye since the end of November 2023, the medium-term trend is therefore bullish.
- More recently, the market has consolidated in a symmetrical triangle chart pattern, between December and today.
Today, the market continues its acceleration with an attempt to clear the upper bound of its symmetrical triangle.
The two long moving averages at 55 and 89 periods remain bullish, even showing an acceleration of the rise in the very short term.
The Stochastic indicator also appears to be confirming the market's bullish clearing, breaking its bullish trendline and entering the overbought zone.
- Although today's crossing is still awaiting validation by the daily close, this is seen as a bullish situation for the Spanish index.
Indeed, the triangle pattern generally plays a trend continuation role, and technical indicators also seem to confirm this hypothesis.
If this scenario is verified today or in the coming trading sessions, with a close above 10,130.0pts (Fibonacci projection at 23.6%), then new targets towards 10,345.0pts, 10,515.0pts then 10,685.0pts would be possible in the short-medium term.
Pierre Veyret, Technical Analyst for ActivTrades
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