ESP35 bottom at 6300 to 6100Hello friends, followers, and traders,
Looking at the 4-hour chart like so many markets there is a bearish overtone taking place at this moment in the guise of an ABC correction.
Fundamentally speaking, Spains main source of income is tourism and since Spain has shut down due to the Coronavirus, we saw a brief but weak rally that has fizzled out and now in a corrective phase that should take price action in the form of an ABC correction along the Fibonacci trail landing between .618% to .786%, I would not be surprised to see a tripe bottom or even a lower low given the circumstances surrounding Spains locked-down borders.
2 days ago, the Spanish government had announced that they want the country’s tourism sector to restart activity at the end of the month of June. We will most likely see a rally in price as a reaction to this news given the fact that the stock is cheap and the probability of making profits is quite high for when the economy gets back up on its feet again.
Spanish Governments Announcement, click here .
Good Luck
Cheers!
